Question 11 pts

Intentional acts focus on actions which the individual knows or should have known would cause harm to another individual or organization. An individual who intentionally pushes someone down during a verbal argument can be argued to have violated which one of the following tort laws?

Group of answer choices

battery

assault

vicarious liability

trespass

Flag question: Question 2Question 21 pts

Often limits for auto liability coverages are written as split limits. Which one of the following limits identify the per occurrence limit for auto liability damage in a split limit of 100/300-50

Group of answer choices

50

100/300

100

300

Flag question: Question 3Question 31 pts

Which of the following statements correctly describe how the principal of indemnity is applied to a property/casualty insurance loss?

Group of answer choices

settle losses that are equal to or in excess of the market value of the property

paying the property market value loss plus defense cost

place the insured in the same financial position they were in prior to the loss

payment of the claim, defense costs, and punitive damages

Flag question: Question 4Question 41 pts

Which of the following statements describe the difference between an insurance agent and insurance broker?

Group of answer choices

the insurance agent represents more insurance companies than an insurance broker

a broker enters into a contractual relationship with insurance companies to transact insurance, while an agent contracts only with the broker

an insurance broker transacts insurance business with admitted insurance companies, while an agent transacts insurance with non-admitted insurance companies

an insurance agent enters into a contractual relationship with an insurance company, while a broker does not

Flag question: Question 5Question 51 pts

The ISO business Auto Policy (BAP) form provides Comprehensive and Collision physical damage coverages for commercial vehicles. Which one of the following statements correctly explains how these two physical damage coverage's are granted for business auto coverage on the ISO BAP policy?

Group of answer choices

the comprehensive damage limit for each auto is listed on the auto declarations page

All business vehicles are automatically covered for physical damage by the BAP form

the BAP form only provides the option of requiring the vehicles to be listed by endorsement

the BAP form illustrates that each auto in a company policy has the same coverage

Flag question: Question 6Question 61 pts

Which of the following statements is correct regarding the influence the reinsurance industry has on the average admitted or standard insurance company?

Group of answer choices

the reinsurance industry provides the necessary support to allow the insurance industry to provide consistent premiums and coverages for their insureds from year to year

because reinsurance industry contracts renew each year, the terms of coverage and costs for providing reinsurance coverage can change causing the primary insurance company to adjust their pricing and coverage's for their insureds

the reinsurance industry has little influence on the larger property/casualty companies because they have the resources to insure larger risks without the support of reinsurance.

reinsurance companies do not impact other reinsurance companies because they operate separately and only participate when the market is soft

Flag question: Question 7Question 71 pts

The Personal Auto Policy (PAP) provides comprehensive coverage for insured autos. Which of the following statements correctly describe the coverage provided by the comprehensive coverage area?

Group of answer choices

provides coverage for auto's that are damaged by the insured's auto

provides coverage for damage to other non-auto property caused by the insured's covered auto

covers damage to the insured's auto caused by crashing into another auto

covers damage caused by theft or other non-auto related accidents or impacts

Flag question: Question 8Question 81 pts

Which one of the following statements best explains the meaning of hazard used in the property/casualty industry?

Group of answer choices

Any condition which increases the chance that a peril may occur

Any event insured against in property/casualty insurance policy's

Property loss exposure that increases the chance of a peril occuring.

Tort liability actions insured against in a property/casualty policy.

Flag question: Question 9Question 91 pts

Which one of the following statements best explains how reinsurance contracts impact the underwriting department staff?

Group of answer choices

The underwriter must be sure the cost of reinsurance in excluded in the premium quotations.

The underwriter must be sure the applicants operation does not include any operations that the reinsurance contracts exclude.

The underwriter is largely unaffected by reinsurance agreements because they focus on the broader business issues senior management is concerned with.

The underwriter must totally ignore the different reinsurance contracts.

Flag question: Question 10Question 101 pts

The underwriter is responsible for maintaining a _________on the renewing book of business they manage.

Group of answer choices

Level premium

Insurance Loss Exposure Analysis

Frequency and Severity Analysis

Targeted Loss Ratio

Flag question: Question 11Question 111 pts

Which one of the following statements is true regarding mutual insurance companies?

Group of answer choices

Mutual insurance companies charge premiums that are generally greater than premiums charged by other tpes of companies.

Mutual insurance companies are most often operating as non-admitted insurance companies.

Mutual insurance companies are owned by the policyholders.

Mutual insurance companies raise capital by selling stock to the general public.

Flag question: Question 12Question 121 pts

Which one of the following answers identifies the important elements or requirements necessary to establish an action as negligent?

Group of answer choices

Duty, Proximate Cause, Harm, and Affirmative Justification

Duty, Breach of Duty, Harm plus Pain and Suffering

Duty, Breach of Duty, Proximate Cause, and Harm

Duty. Vicarious Liability, Harm, Tort

Flag question: Question 13Question 131 pts

The ISO homeowners-3 (HO-3) policy form provides Personal Liability coverage for insureds. Which of the following statements best describe the coverage provided by the HO-3 Personal Liability coverage section?

Group of answer choices

Provides bodily injury coverage for claims filed against the insured or family members

Provides loss of use coverage caused by the insured to third parties

Provides structure and property damage coverage arising out of personal actions of the insured and defense coverage is provided outside the liability limit

Provides loss of use and property damage coverage resulting from actions of the insured; however, defense coverage must be added by endorsement

Flag question: Question 14Question 141 pts

Which of the following property valuation methods correctly describes how Actual Cash Value (ACV) is determined?

Group of answer choices

The cost to replace the property using the current market value less the replacement cost value

The value determined by the historical cost less accumulated depreciation

The value determined by subtracting accumulated physical depreciation from the property's replacement cost

The cost to replace the property item today less depreciation

Flag question: Question 15Question 151 pts

Regarding the business identified in the answers, which of the following situations identify a liability risk the business is exposed to under Strict Liability

Group of answer choices

Customer who is injured when the automatic sliding door closes as the customer is walking through the main entry doorway to the business premises

An employee falls breaking their leg resulting from falling off a ladder used to reach for a box of copy paper needed to refill their copy machine

A customer's car is damaged from vandals who broke into the customer's car during non-business hours

A key customer goes out of business and fails to pay last month's invoice totalling $23,000.

Flag question: Question 16Question 161 pts

ISO (Insurance Services Office) provides commercial insurance contracts for the property/casualty industry. Four commercial Property forms are needed to create a commercial property policy section. Three of the forms are: Commercial Property (CP) Declaration Form Commercial Property (CP) Conditions Form Commercial Property (CP) Cause of Loss Form Which one of the following forms must be added to the forms listed above in order to create a basic insurance policy?

Group of answer choices

Comprehensive General Liability (CGL) Form

Unbrella Form

Common Policy Declarations Page

Commercial Property (CP) Coverage Form

Flag question: Question 17Question 171 pts

The Comprehensive General Liability ISO form provides defense coverage. Which one of the following statements describes how the CGL ISO form grants the insured defense coverage?

Group of answer choices

The CGL form lists defense coverage within the limit of liability insuring agreement

The CGL form agrees to pay all expenses related to defending the insured

The CGL form does not exclude defense costs, therefore, defense coverage is included within the occurrence limit of liability

The CGL form does not provide defense coverage unless that coverage section is activated on the CGL Declarations page

Flag question: Question 18Question 181 pts

An insured is covered by the ISO Homeowners-3 (HO-3) policy form presented in this course. Assume a friend of the insured walks onto the insured's property to deliver his wife's purse that was left at the friend's home following a dinner party. The insured's friend trips over the sprinkler hose and breaks his arm as a result of the fall. Which one of the following coverage categories would respond to this loss?

Group of answer choices

Uinsured Motorist

Medical Payments

Comprehensive Coverage

Loss of Use

Flag question: Question 19Question 191 pts

Which of the following statements best expresses the primary role of the ISO in the property/casualty insurance industry described in this course?

Group of answer choices

ISO reviews insurance company statutory financial statements and provides a financial rating for each property/casualty insurance company

ISO establishes insurance coverage rating information and sample property/casualty insurance contracts for the insurance industry

ISO provides and makes available for a fee, competitive premium information regarding individual company's products

ISO provides access to reinsurance and non-admitted companies for placing insurance coverage's presented to them from surplus line brokers