Exam (elaborations)
FRED LOYA PRACTICE TEST (106 QUESTIONS), LIMITED LINES EXAM
- Course
- Institution
FRED LOYA PRACTICE TEST (106 QUESTIONS), LIMITED LINES EXAM
[Show more]
Content preview
FRED LOYA PRACTICE TEST (106 QUESTIONS),LIMITED LINES EXAM
What course of action does a party to a contract have if the other party is found to be in
breach of that contract? - Answers-Damages for breach, reasonable attorney fees, and
costs.
A representation in an insurance contract qualifies as of the following? - Answers-
implied warranty
What does it mean if an agent's license is inactive? - Answers-the agent cannot transact
any insurance business for which is valid, active license is required
In the State of CA, no rate will remain in effect if it is considered to be any of the
following, EXCEPT: - Answers-Impartial
The amount paid for damage property which is equal to the price for which it could have
been sold is: - Answers-Market value
The limited Mexico endorsement applies to trips to Mexico with a duration of: - Answers-
10 days or less
The equipment dealer's coverage form covers all of the following types of property,
EXCEPT: - Answers-Motor vehicles designed for highway use
Which type of exposure can be best defined as a condition or situation where the
exposure to financial loss is presented to an individual or family from causes such as
injury, disability, death, sickness, or unemployment. - Answers-Personal Loss Exposure
Which of the following is also known as a human loss exposure? - Answers-Personal
loss Exporsure
If a tenant is insured under a building personal property coverage form, when is the
property considered vacant? - Answers-when there is insufficient business personal
property present to conduct customary operations.
It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier
unless: - Answers-The producer is a surplus lines broker
In CA, excess and surplus lines coverage need to be placed through: - Answers-surplus
lines broker
Under a scheduled personal property endorsement, loss to stamps are excluded when
they are: - Answers-Being shipped with a freight company
,Which of the following is most likely to be eligible for the CA fair plan? - Answers-A well-
maintained dwelling located in a hazardous brush area
Mitchell's (unendorsed) personal auto policy liability coverage would pay for: - Answers-
The cost of repairing the neighbor's fence that Mitchell damaged due to the negligent
operation of his car
All of the following are principal rating factors under proposition 103 for PAP, EXCEPT: -
Answers-numbers of listed drivers
Which of the following persons is NOT an insured under section 1 of homeowner's
policy? - Answers-The named insured's (non-resident) spouse.
An umbrella policy: - Answers-provides broad excess liability coverage over one or
more primary policies
All of the following expenses are covered in addition to the limits of liability under
Coverage A of PAP, EXCEPT: - Answers-pre-judgment interest
Carmen is driving her own car on behalf of her employer. Carmen's negligent operation
of her car injures members of the public. The employers may be held liable because of
what is called: - Answers-Vicarious liability
Which of the following perils is insured against in the special form but not in the basic
form? - Answers-Collapse
which of the following types of policies pays for bodily injury or property damage which
occurs or is discovered during the policy period? - Answers-claims made commercial
liability policy
Which of the following types of coverage would pay for losses which occurred during the
policy period and are found for up to one year after policy termination? - Answers-Loss
sustained
What must an insurer do who accepts an application from an agent who is not
specifically appointed by that insurer, and then issues a policy from that application ? -
Answers-forward to the commissioner a notice of appointment with 14 days of receipt of
application
If an insured borrow's a neighbor's vehicle to run a personal errand, how do the policies
respond in the event of an auto incident? - Answers-The neighbor's policy is primary
and the driver's policy is excess
If an armored car carrying an insured's bank deposit is robbed, what insurance would
the insured need to be covered? - Answers-outside the premises-theft or money and
securities
, Under the liability portion of an unendorsed PAP what coverage is available if the
named insured is operating a company car on a regular basis? - Answers-the policy
excludes this usage
A possibility of financial loss resulting from the ownership of property is known as: -
Answers-insurable interest
Self-funding of employee benefit plans CANNOT be used for: - Answers-death benefits
Coverage on an annual transit policy is usually provided on which of the following
basis? - Answers-Named peril
which type of loss is a business exposed to death, retirement, resignation, or disability
of a key employee? - Answers-personnel loss exposure
What is the limit for sound reproducing equipment under the coverage endorsement for
excess sound reproducing equipment, audio, visual and date electronics, tapes,
records, disks, and other media endorsement in a PAP? - Answers-$200
Which of the following statements is true about CAARP? - Answers-The minimum
liability for CAARP is $15,000/$30,000/$5,000
The medical expense plan designed to cover a hospital visit for hernia repair is known
as: - Answers-Basic medical
The amount to replace an insured's damaged property, less depreciation, is known as: -
Answers-Actual Cash Value
What is the difference between the per accident limit in a split limits policy and the
single limits? - Answers-The per accident limit applies only to bodily injuries, and the
single limit applies to all claims
Which peril(s) is/are included in the vacancy permit endorsement? - Answers-Building
glass breakage, sprinkler damage, vandalism. (all of the above)
If an insured rents an auto while on vacation, what coverage, if any, will be available for
physical damage coverage under a personal auto policy? - Answers-The broadest
coverage on any auto shown in the declaration
When is a fire and casualty agent required to inform an insured of any conditions which
may be precedent to coverage regarding a PAP? - Answers-At application
If an insured with a PAP has an accident in a state with PIP, how does the policy
respond? - Answers-coverage automatically is broadened to provide PIP
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now