All of the following statements are CORRECT regarding interest
EXCEPT: - ANSWER-The insured must have a speculative risk in the
property
Which of the following losses is an example of the assured suffering
an average loss? - ANSWER-H's ship's mast is damaged during a
lightning storm and must be repaired
Free from Particular Average Coverage: - ANSWER-Frees the shipper
from minor losses
What will the superintendent of insurance do to an insurer who
violates the cancellation rules? - ANSWER-Revoke their certificate of
authority
Once a controlling producers calendar aggregate gross written
premiums reach 2% or less, what action must the controlling insurer
take? - ANSWER-The controlling insurer does not need to take any
action.
High Rise/Condo buildings typically have which construction
,(according to ISO guidelines)? - ANSWER-Modified/Semi Fire
Resistive
Which of the following incidents would not be excluded under a DP-3
policy? - ANSWER-Burglary of a property that was vacant for 30
consecutive days
Which of the following perils is not a Basic Form (DP-1) peril? -
ANSWER-Explosion
J has Garagekeepers coverage for his auto sales business and has
added excess direct coverage. Excess direct coverage can be best
explained as: - ANSWER-no-fault, goodwill coverage the insurer will
pay for regardless of G's company being at fault or not
Bodily injury is best defines as: - ANSWER-bodily harm, sickness,
disease
An agreement is reached when an insurance contract is formed.
Which of the following is NOT considered to be an element of an
agreement? - ANSWER-Equity
Which of the following statements about NFIP deductibles is TRUE? -
ANSWER-There is a deductible applied to the building and another to
the contents under both the emergency and the regular programs.
According to the Homeowners Endorsement HO 01 34, Special
,Provisions for Ohio, an insurer may cancel a policy after it has been in
force for 60 days for all of the following reasons, except – ANSWER-
The insurer needs to review the coverage following a claim
If an agent is believed to be causing considerable harm, the
superintendent - ANSWER-may issue a cease and desist order
against the agent
G's was drinking coffee at a local coffee shop and working on his
laptop. He went back to the counter and ordered a danish and left his
computer on the table. When he came to his table, his computer was
gone. When G called his agent to report a claim under his DP-3 policy,
the agent informed G that while he was covered for theft, he was only
covered for theft that occurred on his premises. G had: - ANSWER-
Limited Theft Coverage
Which of the following falling objects causing loss would be covered
by a homeowners Broad form policy (HO-2)? - ANSWER-The propeller
of a helicopter falls from the sky, crashes through the roof of the
insured's home and destroys his dining room set
A larger business with varied property and casualty insurance needs
is likely best served by: - ANSWER-a commercial package policy
Which of the following liability limits are given in addition to the
applicable limits of liability stated in the policy? - ANSWER-additional
(supplementary) payments
, All of the following are conditions of a homeowners policy found in
BOTH Sections I and II, EXCEPT: - ANSWER-Appraisal
Which of the following is not a form of coverage available under
Commercial Building and Business Personal Property Form? -
ANSWER-Earthquake
Which of the following Commerical Building and Business Personal
Property Form perils is covered by the Broad form but not by the
Basic form/ - ANSWER-Weight of snow, ice or sleet
According to a Businessowners policy conditions section, changes
must be made in writing as in endorsement by the _____ insured -
ANSWER-First Named
A contract is considered void in all of the following situations
EXCEPT - ANSWER-When consideration is unequal
Which of the following perils are covered by HO-3 & HO-5 policies? -
ANSWER-Earth Movement caused by an explosion
What is the purpose of the Special Provisions endorsement of a
Dwelling Policy? - ANSWER-To adjust the terms of the standard
policy to better reflect local conditions and state law
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