Set 2

The termination of an insurance policy, by either the insured or the insurer before the expiration date, is known as: A. Subrogation B. Abandonment C. Nonrenewal D. Cancellation

When coverage applies to losses from all perils except those specifically excluded, the policy is said to be written on which of the following basis? A. Open Perils B. Named Perils C. Valued D. Agreed Amount

The Additional Coverages part of a property insurance policy provides: A. Coverage that supplements the basic coverages in the insuring agreement which is automatically included without an additional premium B. The insured the right to request that extra coverage be provided by endorsement C. The company the right to voluntarily waive the deductible D. The insured the right to request additional coverage to supplement the policy after paying an additional premium

Which of the following methods of writing insurance is used to provide insurance on properties at different locations, using a single policy, and a single limit of insurance? A. Blanket B. Unified C. Scheduled D. Listed

Which provision stipulates that coverage will not benefit a party that is holding, storing, or moving insured property for a fee? A. Claim Settlement B. Limit of Liability C. No Benefit to Bailee D. Assignment

The following are all found on the Declarations Page, except: A.Location of the insured property B. The exclusions C. Amount of the deductible D. Expiration date of the policy

When the insurance company and insured cannot agree upon the amount of the loss, the person selected to help the two hired appraisers is called a(n): A. Umpire B. Adjuster C. Claim representative D. Agent

Bodily injury liability coverage includes all of the following, except: A. Lost wages B. Mental anguish C. Breach of contract D. Medical bills

Personal Injury includes all of the following, except: A. False Arrest B. Libel C. Slander D. Bodily Injury

Bodily Injury may include which of the following? A. Slander B. False Arrest C. Loss of Earnings D. Invasion of Privacy

Which of the following is a legal liability imposed without demonstrated negligence? A. Vicarious Liability B. Direct Liability C. Contingent Liability D. Absolute Liability

Personal injury liability includes which of the following? A. Libel and slander B. Theft C. Sickness and disease D. Medical payments

When damages are reduced in proportion to the degree of negligence, this is an example of: A. Contributory Negligence B. Absolute Negligence C. Proportional Negligence D. Comparative Negligence

When a claimant can prove that a product caused an injury, the fact that the manufacturer will be held liable regardless of whether the product was defective or not, is considered which of the following? A. Strict Liability B. Vicarious Liability C. Direct Liability D. Contingent Liability

What is the principle of liability that imposes legal liability for injury and damage by products? A. Professional liability B. Contingent liability C. Strict liability D. Absolute liability

Policyholder J has a no-fault auto policy. Upon being hit by a driver that ran a stop light, J suffers a broken leg. Whose insurance company will pay for J's injury? A. The insurer of the at-fault driver B. J's and the negligent driver's insurer will share the loss C. J's insurer D. The court will determine which insurer is responsible

The formal statement that verifies details so the insurer can determine liability is called: A. A Binder B. A Certificate of Authority C. A Certificate of Insurance D. A Proof of Loss

Which of the following is true regarding a negligence claim? A. Every accident resulting in bodily injury or property damage is due to a negligent act B. The claimant must demonstrate that the actions of the insured were the direct or proximate cause of the claimed injury or damages C. In every accident there is one or more negligent parties D. An uninjured party to an accident is presumed to be negligent

Which of the following defenses against negligence reduces damages in proportion to the degree of negligence? A. Statute of Limitation B. Comparative Negligence C. Contributory Negligence D. Assumption of Risk

Which of the following would be considered an attractive nuisance? A. A toy store B. A candy store C. A back lawn D. A trampoline

Which of the following defenses against negligence prevents recovery for injuries caused by a negligent party if the claimant was also negligent? A. Contributory Negligence B. Assumption of Risk C. Comparative Negligence D. Intervening Cause

All of the following perils are included under the Dwelling Broad Form, except: A. Falling Objects B. Smoke damage from industrial operations C. Burglary Damage D. Volcanic Eruption

Under Coverage A of a Dwelling Policy, all of the following are covered, except: A. Materials for repairing the dwelling, located on the described location B. Fire or lightning damage to outdoor television antennas C. Land, including the land on which the dwelling is located D. Outdoor equipment on the location used to service the dwelling

Policyholder M insures her owner-occupied single family residence under a dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what policy coverage will pay for M's extra costs to stay in a motel and board her pets while the fire damage is being repaired? A. Coverage E B. Coverage B C. Coverage C D. Coverage D

Which of the following is true regarding Coverage A under the Dwelling Policy? A. The policy does not include coverage for wind loss of television antennas B. Outdoor equipment is not covered C. Coverage for land is restricted to the land upon which the dwelling is sitting D. Coverage A includes a detached carport

Under a Dwelling Policy, the coverage extension of Debris Removal will pay for: A. The removal of the debris from an automobile accident on the insured location B. The removal of the debris caused by an insured peril C. The removal of debris resulting from the action of a civil authority D. The removal of debris resulting from demolition required by an ordinance or law

Of the Dwelling Policy forms, which one would cover an owned mobile home permanently affixed to a foundation? A. DP-1, 2, or 3 B. DP-2 C. DP-1 D. DP-3

Policyholder N insures his owner-occupied home under a dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what is the limit of insurance that will apply to Coverage E, Additional Living Expense? A. $20,000 B. $10,000 C. $50,000 D. $40,000

Coverage D of the Dwelling Policy provides coverage for: A. Fair Rental Value B. Trees, Shrubs, and Other Plants C. Other Structures D. Additional Living Expenses

Which of the following is true of the Dwelling Under Construction Endorsement of a Dwelling Policy? A. The premium is based upon the average amount of insurance during construction B. The insured has up to 90 days to notify the company that the dwelling is occupied C. Insurance applies to the Dwelling and to other structures D. The amount of insurance in force is the limit of liability stated in the Declarations