Comprehensive Exam Study Guide 2024 latest complete update 100% guaranteed.
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Course
MGT 450
Institution
MGT 450
Comprehensive Exam Study Guide 2024 latest complete update 100% guaranteed
Which of the following statements about Coverage C under the Homeowners policy is incorrect?
A)Limited coverage is provided for personal property located in a student insured's dorm
B)Coverage C pr...
comprehensive exam study guide 2024 latest complet
which of the following statements about coverage c
a worker suffers a spinal injury that leaves the w
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Comprehensive Exam Study Guide 2024
latest complete update 100% guaranteed
Which of the following statements about Coverage C under the Homeowners policy is
incorrect?
A)Limited coverage is provided for personal property located in a student insured's dorm
B)Coverage C provides property coverage for machinery used to service the premises
C)Coverage for business personal property on the premises is provided, up to a special
limit
D)Coverage C provides coverage for the property of roomers and boarders at the
insured's request - answer Coverage C provides coverage for the property of
roomers and boarders at the insured's request
The property of roomers and boarders is considered property not covered by Coverage
C. The property of guests and residence employees, however, may be provided upon
request. Business personal property associated with a home-based business that is on
the residence premises is protected up to a $2,500 special limit.
A worker suffers a spinal injury that leaves the worker unable to work, with no possibility
of improvement. This type of disability is called:
Permanent total
B
Permanent partial
C
Temporary partial
D
Temporary total - answer A) Permanent Total
,A permanent total disability is a disability where no improvement is possible and that
leaves the injured employee unable to do any work.
An insurance company is organized under the laws of the United Kingdom, and is
authorized to do business in New York. In New York, what kind of insurer is this?
A
Non-admitted foreign insurer
B
Admitted domestic insurer
C
Admitted alien insurer
D
Admitted foreign insurer - answer C) Admitted alien insurer
The insurer is incorporated in a different country, so it is considered an alien insurer.
Because it is authorized to do business in a state, it is considered an admitted insurer.
General damages are those that:
A
Compensate an injured party for suffering, loss of consortium, and similar types of
losses
B
Are awarded to the negligent party to punish wrongdoing
C
Can be documented by objective dollar amounts
D
Are awarded to the general public rather than to a specific party - answer A
Compensate an injured party for suffering, loss of consortium, and similar types of
losses
General damages are damages for noneconomic losses that are likely to continue into
the future, where it is difficult to put a final figure on the losses.
Homeowners policies cover all of the following losses to trees, shrubs, and plants,
except:
A
Loss due to lightning
B
Loss due to vehicles not owned or operated by a resident
C
Loss due to theft
D
A loss resulting from a windstorm - answer A loss resulting from a windstorm
,Damage to plants by windstorm, hail, or the weight of ice, snow, or sleet is considered
so common as to be an uninsurable peril. The Trees, Shrubs, and Other Plants
Additional Coverages names the perils insured against: fire, lightning, explosion, riot or
civil commotion, aircraft, vehicles not owned or operated by a resident, vandalism or
malicious mischief, and theft.
Which statement regarding liability insurance coverage is incorrect?
A
The per occurrence limit is the maximum amount recoverable during the policy period
B
If the policy is written as primary coverage, it pays first with respect to other policies
C
Casualty policies must defend the insured against liability claims made against them,
but only if the claim is relevant to the policy's coverage
D
Pro rata liability is the proportionate distribution of liability among insurers that have
policies on the same risk - answer A)The per occurrence limit is the maximum
amount recoverable during the policy period
The occurrence limit is the most that will be paid for any one occurrence. The aggregate
limit is the most that will be paid within the policy period. Pro rata liability refers to the
policy's Other Insurance clause and indicates that when two policies both cover a loss,
they coordinate coverage by paying proportionate amounts compared to the total
amount of insurance available for the loss.
Who is responsible for paying premiums, and will receive any premiums that have to be
returned?
A
Any named insured
B
An additional insured
C
First named insured
D
Any insured - answer C) First named insured
The first named insured is granted certain rights and responsibilities under the policy.
This includes being responsible for premium payments and being the recipient if the
insurer has to remit premiums, such as if the policy is cancelled.
P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this
transaction, who is known as the principal?
A
P, the agent
, B
M, the insured
C
ABC Insurer
D
M's beneficiary - answer C)ABC Insurer
This is referring to the Law of Agency, which is about the relationship between two
parties: the principal and the agent. The agent, also referred to as the producer,
represents and acts on behalf of the principal, which is the insurance company. The
insured is not part of the Law of Agency.
Which of the following is true regarding business personal property under a BOP?
A
It is covered while in transit
B
It is covered when located in or on the building at the described premises, or in the open
within 100 feet of the premises
C
It is covered only while within the building or an enclosed structure on the premises
D
Coverage extends to property in vehicles within 500 feet of the premises - answer B)
It is covered when located in or on the building at the described premises, or in the open
within 100 feet of the premises
Business personal property is covered while in or on the building at the described
premises, or in the open or in a vehicle within 100 feet of the premises.
Which of the following statements regarding UM/UIM coverage in Arkansas is correct?
A
UM/UIM coverage is required for all insured drivers
B
A policy's liability limits and UM/UIM limits must always be equal
C
UM/UIM limits must be between the state minimum and the liability limits of the policy
D
UM/UIM coverage limits cannot exceed the state minimums - answer C)UM/UIM
limits must be between the state minimum and the liability limits of the policy
UM/UIM coverage must be offered, but is not required coverage. Its limits must at least
equal the state minimum liability limits, but can be up to the policy's liability limits.
J has a Personal Auto policy with liability limits of 50/100/25, a medical payments limit of
$5,000, and comprehensive and collision deductibles of $500. J's vehicle slides on ice
and hits a guardrail, causing $9,500 in damage to the vehicle and $11,000 damage to
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