An example of first-party coverage is: Select one: a. a business insuring itself against selling a faulty light socket b. a corporation insuring itself against lawsuits from disgruntled customers c. a homeowner insuring a house and its contents d. a homeowner insuring himself against accidental death Question 4 Not yet answered Points out of 4 Flag question Question text The first and most important part of policy is the: Select one: a. exclusions page b. conditions page c. endorsements page d. declarationspage Question 5 Not yet answered Points out of 4 Flag question Question text All of the following are true EXCEPT: Select one: a. Mutual insurance companies issue stock and are organized as for-profit corporations b. Mutual insurance companies are owned by policy-holders and profits are disbursed in dividends c. Mutual insurance companies have a harder time raising capital than other insurance companies d. Mutual insurance companies are permitted to merge with other companies to form a larger company Question 6 Not yet answered Points out of 4 Flag question Question text The two basic types of reinsurance are: Select one: a. treaty reinsurance and collective reinsurance b. facultative reinsurance and stabilized-fund reinsurance c. treaty reinsurance and facultative reinsurance d. collective reinsurance and stabilized-fund reinsurance Question 7 Not yet answered Points out of 4 Flag question Question text The doctrine of comparative negligence does what? Select one: a. reduces a defendant's liability by the degree to which the injured party was deemed negligent b. eliminates a defendant's liability if the injured party was also negligent c. eliminates a defendant's liability if the injured party was more negligent than the defendant d. eliminates a defendant's liability if the injured party had a chance to avoid the injury Question 8 Not yet answered Points out of 4 Flag question Question text Motorcycles, ATVs, and other motorized vehicles should be covered by: Select one: a. a homeowner's poilcy b. an automobile policy c. a recreational vehicle policy d. a single-user policy Question 9 Not yet answered Points out of 4 Flag question Question text Forms HO-3, HO-4, and HO-5 are written on: Select one: a. an occurrence liability basis b. a cash value basis c. a replacement cost basis d. a special perils basis Question 10 Not yet answered Points out of 4 Flag question Question text In a policy under Section I, additional coverages include all of the following EXCEPT: Select one: a. debris removal b. fine art c. credid cards d. trees and shrubs True umbrella policies: Select one: a. provide coverage only where in underlying form supports the coverage b. provide coverage where the underlying form does not c. provide coverage with no exclusions on homeowners or automobile policies d. provide coverage within the United States, its territories, and Canada only Question 12 Not yet answered Points out of 4 Flag question Question text Endorsements to a homeowner's policy can: Select one: a. require the homeowner to insure separate buildings for business proposes b. provide coverage for individuals living in business buildings for a short time c. provide for limited coverage of business activities or properties d. allow a homeowner to run a business out of a home without paying additional insurance premiums Question 13 Not yet answered Points out of 4 Flag question Question text In addition to covering liability for bodily injury or property damage, home-based business coverage can also cover: Select one: a. personal belongings not used for business b. automobiles used for business and personal use c. slander, libel, and copyright infringement d. personal medical services Question 14 Not yet answered Points out of 4 Flag question Question text For a commercial automobile policy, which of the following is NOT a factor to consider? Select one: a. How many vehicles the organization has in its fleet b. Whether the vehicles will be used for public transportation c. Whether the vehicles are of a similar make and model d. If individuals' vehicles will be used for business Question 15 Not yet answered Points out of 4 Flag question Question text The four factors used in examining real property are: Select one: a. construction, occupancy, protection, and exposures b. construction, age, protection, and exposures c. protection, occupancy, prior losses, and exposures d. protection, age, repair, and exposures Question 16 Not yet answered Points out of 4 Flag question Question text Flood insurance is reinsured by: Select one: a. state government flood insurance programs b. private flood specialists c. inland marine insurers d. the federal government Question 17 Not yet answered Points out of 4 Flag question Question text The term "nonowned auto" includes Select one: a. an abandoned automobile b. an automobile not owned, rented, leased, or hired by the insured but being used by the insured c. an automobile loaned by the insured to a family member d. an automobile in the process of being sold Question 18 Not yet answered Points out of 4 Flag question Question text Liability insurance states that: Select one: a. the insurer will pay damages for injury or property damage to a third party caused by the insured b. the insurer will pay damages for injury or property damage caused by a third party to the insured c. the insurer will hold the insured liable for damages caused by the insured but will pay for medical costs for the insured d. the insurer will pay damages for property damage but not injury caused by the insured Question 19 Not yet answered Points out of 4 Flag question Question text Liability coverage under a business auto policy would cover: Select one: a. injuries to a fellow employee caused an employee driving a company car. b. damage to a fellow employee's personal car caused by an employee driving a company car. c. damage to one company car caused by an employee driving a second company car. d. damage caused by a car used in professional racing. Question 20 Not yet answered Points out of 4 Flag question Question text A CGL form including BI would cover which of the following cases? Select one: a. The insured's employee is driving a company car to a meeting and is hit by a deer. The car is denteD. b. The insured makes an advertising claim that is contested by a customer. The advertising claim is proven to be true. c. The insured owns a grovery store. A customer slips on a patch of spilled cranberry sauce and breaks her arm. d. The insured offers motorcycles to its employees for their use. One night, a motorcycle is stolen from the company's parking lot. Exclusions beyond coverages A and B can be added to a CGL form through: Select one: a. affidavits b. supplementary payments c. retained limits d. endorsements Question 22 Not yet answered Points out of 4 Flag question Question text A manufacturer is generally considered to have: Select one: a. a duty to exercise reasonable care in the manufacturing, designing, and packaging of its product b. a duty to meet governmental standards in the manufacturing, designing, and packaging of its product c. a duty to manufacture products using only materials approved by a state oversight board for manufacturing d. a duty to the public to produce goods manufactured in the United States using American materials whenever possible Question 23 Not yet answered Points out of 4 Flag question Question text All of the following are true EXCEPT: Select one: a. Most umbrella policies resemble one another in broad, general ways. b. The ISO has introduced a standard form for commercial umbrella liability insurance that has been widely adopted as a standard policy. c. Umbrella underwriting rules are largely a matter of judgment of the insurer. d. Significant differences will often be found even in the provisions of umbrella policies offered by the same insurer to different insureds or classes of risk. Question 24 Not yet answered Points out of 4 Flag question Question text Which of the following is true with respect to a commercial umbrella liability policy? Select one: a. Premiums are generally tax deductible as a business expense. b. Premiums are tax deductible as a business expense for a corporation, but not for a sole proprietor. c. Premiums are not tax deductible as a business expense. d. Premiums may or may not be tax deductible as a business expense depending on the exposures covered. Question 25 Not yet answered Points out of 4 Flag question Question text In a third-party-over action: Select one: a. an employer sues a third party for injury to its employee. b. an employee sues a third party for an injury, and the third party sues the employer for contributory negligence. c. an employee and employer jointly sue a third party for an injury. d. a third-party sues an employee for an injury. Question 26 Not yet answered Points out of 4 Flag question Question text The exclusive remedy rule: Select one: a. precludes employees from ever suing their employers. b. generally precludes employees from suing their employers for injuries sustained during the course of employment. c. generally precludes employees from suing their employers for any injuries. d. renders employers liability coverage unnecessary. Question 27 Not yet answered Points out of 4 Flag question Question text Workers compensation systems are generally: Select one: a. optional for both employers and employees b. optional for employees, but mandatory for employers c. optional for employers, but mandatory for employees d. mandatory for both employers and employees Question 28 Not yet answered Points out of 4 Flag question Question text A claims-made policy covers: Select one: a. claims for injury or damage that are made during the policy period or an extended reporting period only b. claims for injury or damage that are made during the policy period and up to the three-year anniversary of the expiration of the policy c. claims for injury or damage that are made any time during or after the policy period d. claims for injury or damage that are made after the policy period and during an extended reporting period only Question 29 Not yet answered Points out of 4 Flag question Question text Three types of shareholder and corporate claims are: Select one: a. age discrimination, negligence, and financial loss b. negligence, bad faith, and financial loss c. gender discrimination, bad faith, and personal liability d. bad faith, negligence, and fiduciary duty Question 30 Not yet answered Points out of 4 Flag question Question text Employee claims are those that: Select one: a. allege unauthorized conduct against directors or officers b. allege improper fiduciary duty against directors or officers c. allege discrimination or wrongful discharge against directors or officers d. allege deepening insolvency against directors or officers One benefit of group coverage may be: Select one: a. it allows its members to select their own physicians b. it can help individuals and their spouses share deductibles and other costs c. it can insure an entire family or business for a single deductible d. it can be less costly than individual coverage Question 32 Not yet answered Points out of 4 Flag question Question text The method of handling risk called retention is also known as: Select one: a. liquidity b. self-insuring c. long-term care d. preventive care Question 33 Not yet answered Points out of 4 Flag question Question text Coinsurance requires that: Select one: a. both the policyholder and the insurer pay part of each covered expense after the deductible has been met b. both the policyholder and the insurer pay part of the retention limit of the policy c. both the policyholder and a co-signer on the policy pay part of each covered expense up to an amount equal to the deductible d. both the policyholder and a co-signer on the policy guarantee to pay one-half of each covered expense after the deductible has been met each Question 34 Not yet answered Points out of 4 Flag question Question text Traditional indemnity insurance: Select one: a. requires the patient to pay for his or her complete medical costs, usually out of a medical savings account b. requires the insured to pay a minimum dollar amount per day in the hospital c. pays the insured a daily income replacement of $100 to $400 per day d. pays a specified amount for each day the insured is in the hospital Question 35 Not yet answered Points out of 4 Flag question Question text If Bear Industries reimburses its workers for their premiums paid on personally-owned medical expense insurance: Select one: a. the reimbursements are excludable from the workers' gross income b. the reimbursements are excludable from the workers' net income c. the reimbursements are includable from the workers' gross income d. the reimbursements are includable from the workers' net income Question 36 Not yet answered Points out of 4 Flag question Question text If Koi International gives Susan a check for $300 to be used as she sees fit, and she uses it to cover her medical insurance premium: Select one: a. she must return any unused portion of the $300 to her employer at the end of the year b. she may consider the amount a reimbursement and pay no taxes on it c. she may ask her insurance company for a receipt so that her employer can exclude the amount from its taxes d. she must declare the amount and pay taxes on it Question 37 Not yet answered Points out of 4 Flag question Question text For a policy holder with a partial disability: Select one: a. a disability income insurance policy will pay 100% of salary for the first 60 days, then 50% of salary thereafter b. a disability income insurance policy will pay a partial benefit, such as 50% of the total disability payment c. a disability income insurance policy will pay a 50% of medical costs and 50% of salary d. a disability income insurance policy will pay benefits covering 50%of retraining and rehabilitation costs until the lost functions are regained Question 38 Not yet answered Points out of 4 Flag question Question text Which of the following is TRUE about disability income insurance and taxation? Select one: a. Premiums are generally not deductible, but benefit payments are exempt from income tax b. Both premiums and benefit payments are exempt from income tax c. Premiums are exempt from income tax, but benefit payments are not deductible d. Neither premiums nor benefit payments are exempt from income tax Question 39 Not yet answered Points out of 4 Flag question Question text The only real alternative to disability income insurance is: Select one: a. a trust fund b. medical insurance c. self-insurance d. a medical expense savings account Question 40 Not yet answered Points out of 4 Flag question Question text Katie works at Laine & Laine, a law firm, and pays 2/5 of her disability income premiums, with her employers paying the rest. If Katie becomes disabled and is paid a monthly benefit of $2,500, how much of her monthly benefit is taxable? Select one: a. $1,000 b. $2,000 c. $1,500 d. $500