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Insurance questions
Insurance questions
To qualify as a self-insurer for workers compensation purposes in Utah, a company must do all of the following EXCEPT:
A. Receive approval from the Industrial Accidents Division of the Labor Commission.
B. Show that it has sufficient financial strength and liquidity.
C. Submit an application and maintain a surety bond.
D. demonstrate that it has at least $5 million in surplus and capital.
D. demonstrate that it has at least $5 million in surplus and capital.
Every company that wishes to self-insure must obtain approval from the Industrial Accidents Division of the Labor Commission. A company must also submit an application, be in business for at least five years, maintain sufficient financial strength and liquidity, maintain a surety bond or irrevocable letter of credit, and maintain specific or aggregate excess insurance with acceptable policy limits and retention amounts.
How long is a written insurance binder valid?
A binder is valid for up to 150 days or until the date a policy is issued, whichever occurs first.
What does the Federal Aviation Administration issue to grant authority for an airline to operate an aircraft in flight?
A. an insurance policy
B. a bond
C. a license
D. a certificate of airworthiness
A certificate of airworthiness is a document issued by the FAA that grants authority to the registered owner of an aircraft to operate the aircraft in flight.
What is Lexi's Favorite color?
Brown
Which of the standard homeowners policies includes malicious mischief as a named peril?
A. only HO 3
B. all forms except HO 5 and HO 8
C. all forms except HO 5
D. all forms
C. all forms except HO 5
The perils covered by the homeowners policy vary by form. Vandalism and malicious mischief is a named peril in all of the standard homeowners policies except HO 5 (Comprehensive Form) because it is the only homeowners policy that provides open perils coverage for all types of covered property.
The federal Fair Credit Reporting Act protects the rights of which of the following?
A. creditors
B. consumers
C. insurers
D. the Department of Insurance
B. Consumers
The Fair Credit Reporting Act of 1970 protects the rights of consumers for whom an inspection report or consumer credit report is made.
Jill owns a homeowners policy that includes a business pursuits endorsement. She is considering a business that will let her work out of her home. Which of the following business pursuits is covered under this endorsement?
A. a housecleaning service for which she would be the owner
B. a personal home care products business owned by a large company for which she would be an independent sales consultant
C. a freelance writing business for which she would be the sole proprietor
D. a tee shirt painting business that she would own with her brother, who lives in the same town
B. a personal home care products business owned by a large company for which she would be an independent sales consultant
The business pursuits endorsement covers specified business pursuits of the named insured but only if the business is not owned or financially controlled by the insured. There is no coverage for professional services, unless it involves teaching.
Does Lexi wish the Disneyland would open already? Y/N
Yes.
Which of the following would best serve business owners who want to supplement the liability coverage of their commercial general liability policy with excess liability coverage?
Commercial umbrella liability insurance
In addition to general liability insurance, many businesses buy excess liability coverage in the form of a commercial umbrella policy. Most umbrella liability policies provide excess coverage over a business's general liability, auto liability, and employers liability insurance.
All of the following types of personal property are covered by a homeowners policy EXCEPT:
A. the insured's Labrador Retriever
B. the insured's bicycle
C. the insured's computer
D. the insured's golf clubs
A. the insured's Labrador Retriever
Animals, birds, and fish are not covered personal property on the homeowners policy.
Mr. and Mrs. Ferreira were injured when their car was rear-ended by a drunk driver. Before they can sue the at-fault driver to recover damages for their injuries, they first must submit their injury claim to their own auto insurer for payment. What type of state law makes this requirement?
A. no-fault insurance laws
B. personal injury protection laws
C. compulsory insurance laws
D. financial responsibility laws
A. no-fault insurance laws
Under a no-fault system, state law requires an injured person to first recover damages from his or her own insurance policy rather than from another party's insurance policy. If they exceed the tort threshold, that is, their medical expenses exceed a monetary threshold or the injuries are serious as defined by the law's verbal threshold, they may then sue the at-fault third party.
What percentage do you need to get on the test in order to pass?
70%
An individual who wants broader coverage and higher limits on certain personal property than is provided under an unendorsed homeowners would best be served by:
A. increasing the limits on personal property
B. buying an umbrella policy
C. buying a personal articles floater
D. reducing the policy deductible
C. buying a personal articles floater
Homeowners policies have sublimits on certain types of property and limit personal property coverage to certain named perils. Many people buy personal inland marine policies, commonly referred to as floaters, to broaden coverage and increase the sublimits on certain types of property. Coverage is typically on an open perils basis.
Someone broke into Mr. Johnson's house and stole $5,000 worth of firearms. What Coverage C special limit of liability applies to the loss?
A. No special limit applies to firearms.
B. $500
C. $1,000
D. $2,500
D. $2,500
The Coverage C special limit of liability applying to loss by theft of firearms and related items is $2,500.
The building and personal property coverage form of a commercial property policy includes what three categories of covered property?
A. business property of others, building property, and other structures
B. building property, business personal property of the insured, and personal property of others
C. building property of others, building property of insured, and personal property of insured
D. building property, business personal property of the insured, and neighboring property
B. building property, business personal property of the insured, and personal property of others
The ISO building and personal property coverage form has three categories of covered property: building property, business personal property of the insured, and personal property of others.
What is more important to BMI, retention or sales?
RETENTION!
Although both are very important we want to make sure our clients are taken care of before anything else.
The personal injury endorsement includes personal injury arising out of all of the following EXCEPT:
A. malicious prosecution
B. lawful imprisonment
C. wrongful eviction
D. slander
B. lawful imprisonment
The personal injury endorsement modifies the definition of bodily injury under a homeowners policy to include personal injury arising out of false arrest, detention, or imprisonment, malicious prosecution, wrongful eviction, slander, and libel.
Smith Motors has garagekeepers coverage with a $500 per auto deductible and a $2,500 maximum deductible per loss. Vandals break in and damage ten vehicles, causing $400 in damage to each vehicle for a total loss of $4,000. How much of that total loss will Smith pay as the deductible?
A. $0
B. $1,500
C. $2,500
D. $4,000
C. $2,500
The deductible applies for losses from collision, theft, mischief, and vandalism. A maximum deductible amount applies when a loss is caused by theft, mischief, or vandalism. In this case, the maximum deductible, which Smith must cover, is $2,500. The insurer will pay $1,500.
With respect to a commercial property policy, which of the following correctly describes the type(s) of property included in the term "building property"?
A. any property used in the business
B. the building and any business property in the building and on the grounds, including sidewalks and curbs
C. buildings and structures, indoor and outdoor fixtures, including signs attached to the building, and personal property used to service the building
D. fixtures within the building only
C. buildings and structures, indoor and outdoor fixtures, including signs attached to the building, and personal property used to service the building
The building property category includes the building(s) identified in the policy declarations, as well as indoor and outdoor fixtures and personal property used to service the building. Additions under construction, alterations, and repairs to the buildings and structures identified in the policy declarations also qualify as covered building property if they are not covered by other insurance.
What would Lexi do first if she could:
A. Lexi would go to Disneyland
B. Lexi would go fishing in Alaska
C. Lexi would sell $100,000,000 in premium
D. Lexi would take a 12 hour nap in the middle of the day.
Trick question!! Lexi would do all of them lol You all get the points! :)