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On January 27, 2008, Ryan was using an exercise bike purchased from NusquamCycle when the chain broke, causing him to fall and severely bruise his knee. It seemed to heal just fine, but three years later, on January 25, 2011, Ryan's knee gave out while jogging. His doctor told him that he'll need surgery and that this deterioration resulted from the earlier accident with the exercise bike. Which of the following CGL policies may cover Ryan's claim filed January 25, 2011? A. An occurrence policy from Jan 31 2011 - Jan 31 2013 B. An occurrence policy from Feb 28 2008 - Feb 28 2010 C. A claims-made policy from Jan 31 2008 - Jan 31 2010 D. A claims-made policy from Jan 31 2009 - Jan 31 2011 - ✔✔D Which of the following statements about Indiana's approach to Workers' Comp insurance is true?
A. WC is compulsory, and Indiana has no state WC fund. B. WC is elective, and Indiana has no state WC fund. C. WC is elective, and Indiana has a competitive state WC fund. D. WC is compulsory, and Indiana has a monopolistic state WC fund. - ✔✔A Who is NOT eligible for a homeowners policy? A. An owner of a home under construction B. A person who owns and lives in his house C. A tenant who rents a home or apartment D. An owner of a house in which he does not live, but rents to a tenant - ✔✔D Frank owns a bakery specializing in authentic French bread. He uses two specialty ovens for his daily production of French bread. If one of these giant ovens were to break down, it would cost Frank's bakery a lot of money to repair, not to mention the loss of revenue caused by lower production. On his Equipment Breakdown Protection Form, each of Frank's ovens would be considered:
B. $15,
C. $3,
D. $1,500 - ✔✔A
All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT: A. anything the insured must do for coverage to remain in effect. B. what the insured must do in the event of a lawsuit. C. the insured's duties after a loss. D. causes of loss that are not covered. - ✔✔D A few weeks ago Christopher's garage was destroyed by an out-of-control motorist. Fortunately, the motorist had sufficient liability insurance to cover the damages. However, the insurer insists that Christopher's garage is worth far less than the appraisals he has received from contractors. Christopher and the insurer
have gone back and forth in negotiations for weeks, making little headway. Christopher decides it's time to: A. issue an answer for the policyholder. B. issue a judgment. C. issue a complaint against the policyholder. D. issue a reservation of rights. - ✔✔C Which of the following may be covered under an Equipment Breakdown Protection Coverage Form? A. Self-propelled equipment B. Dragline, excavation, and construction equipment C. Equipment built to operate under internal pressure or vacuum D. Equipment used solely for therapeutic or surgical purposes - ✔✔C Jim drops his car off at ABC Garage to have his exhaust system repaired and takes the train to work. When he returns, he finds that his car has been vandalized. Jim
D. $10,000 - ACV pays at current market value minus depreciation - ✔✔D Which statement about Personal Article Floaters is FALSE? A. They pay the least of the following for damaged property: actual cash value; the cost to repair or replace; or the coverage limits. B. Coverage is worldwide. C. They cover property on an open-peril basis. D. They have a $500 deductible. - ✔✔D In a Commercial Crime policy, a "messenger" is defined as: A. the insured, a business partner, or an employee who has care or custody of insured property inside the premises, excluding anyone acting as a watchperson or janitor. B. someone hired by the insured to have no other duty but to transport insured property from the premises to another location.
C. the insured or relative of the insured, a business partner, or an employee who has care and custody of insured property while outside the premises. D. someone hired by the insured to have no other duty but to maintain care and custody of insured property inside the premises. Your Answer - ✔✔C *Every workers' comp insurance company that operates in Indiana must: A. join the Indiana Life and Health Insurance Guaranty Association. Your Answer B. become a Lloyd's plan insurer. C. become a member of the Indiana Insurance Guaranty Association. D. have a physical office with a minimum of 2,500 square feet. - ✔✔C Which of the following statements about Crop-Hail insurance is FALSE? A. It is subsidized by the FCIC. B. It is rated on an acreage basis.
Which of the following is NOT true of the Company's Options provision in the standard fire policy? A. It mandates that the insurer notify the claimant of its choices within 30 days of receiving required proof of loss. B. It requires the insurer to settle the claim, in whichever manner it chooses, within 30 days of receiving notice of the claim. C. It states that the insurer may choose whether to take all, or part, of the damaged property at the agreed or appraised value. Your Answer D. It allows the insurer the choice of whether to repair, rebuild, or replace damaged property. - ✔✔B Craig has an HO- 3 policy covering his primary residence with a Coverage A limit of $250,000, Coverage B limit of $25,000, and a Coverage C limit of $150,000. Craig also has a cabin on the lake, which was burglarized. The thieves stole much of the
cabin's contents, for a total loss of $18,500. Ignoring any deductibles, how much will Craig's HO-3 policy pay for this claim? A. $2, B. $ C. $15, D. $18,500 - ✔✔C When the dollar amount difference between an adjuster and a claimant is very large, the adjuster should: A. consult a more experienced adjuster. B. negotiate to decrease the difference between the two. C. move to dispute resolution. D. begin the investigation over to see what has been missed. - ✔✔D During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the
D. $5,000 - ✔✔D
John moved out of his house and put it up for sale three months ago. While he was waiting for the house to sell, John's plumbing pipes froze and burst in the icy temperatures, which eventually led to water damaging the cabinetry and hardwood floors. Which of the following statements would most likely be TRUE? A. Although John's house was still covered under an HO-3, the damage would not be covered because he didn't shut off the water supply. B. Because John's house was still covered under an HO-3, the damage would be covered. Your Answer C. Although John's house was still covered under an HO-3, the surface water resulting from the damaged pipes is not a covered peril. D. Freezing is not a covered peril in an HO-3, so this loss would not be covered. - ✔✔A
Chandler is a photographer who is taking pictures at a reenactment of the Battle of Gettysburg, when Harper (Union Cavalry) crashes through the brush and into Chandler, breaking both his arms and his camera. In court, Chandler demands payment not only for his medical bills and broken camera, but for future lost business; now that he is unable to take pictures for the next 6 months, his clients are moving on and entering into contracts with other photographers. When Chandler speaks of this total amount of all damages that have resulted and will result from Harper's mistake, he is referring to: A. punitive damages. B. diminution of value. C. joint tortfeasors. D. reservation of rights. - ✔✔B Jimmy owns a pawn shop which brings with it a certain amount of risk. He decides to hire a security guard, and install a surveillance system and an alarm system to reduce his monthly premiums on his commercial property policy through the: A. Protective Safeguard endorsement.
B. Subrogation C. Bailment D. Non-Owned Vehicle Coverage - ✔✔A In Indiana, workers' compensation insurance can cover funeral expenses, up to: A. $ B. $ C. $ D. $4500 - ✔✔C Generally speaking, which of the following has the broadest coverage? A. Stand alone excess liability B. Umbrella coverage C. Stand alone umbrella liability D. Follow form excess liability - ✔✔B
Which of the following is NOT considered a covered theft in a Commercial Crime policy? A. A customer dashes out of the store with a bag full of goods. B. The delivery man secretly withholds a package of goods for his own use after having them signed for. C. Three employees are discovered siphoning cash from the register at regular intervals. D. A periodic assessment of inventory reveals that 4% of a store's inventory is inexplicably missing. - ✔✔D Wendy hires Jim to build an addition to her house. Jim takes the job and finishes it in good time. Unfortunately, as Wendy is walking across the threshold of the new addition, a floorboard gives way and Wendy falls into the crawl-space below, injuring her leg and back. Which commercial general liability coverage could help cover the cost of Wendy's injuries? A. Premises Liability
D. show sympathy for the situation. - ✔✔B *Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on May 31. Which of the following statements is true? A. Lemon Insurance must notify Hugh at least 10 days before the policy expires. B. Hugh's policy will be effective until 12:00 AM on June 1. C. Lemon Insurance must notify Hugh at least 45 days before the policy expires. D. Hugh's policy will be effective until 12:01 AM on May 31. - ✔✔A George lives in Connecticut and carries the minimum amount of auto liability insurance for that state, which is 20/40/10. On a trip to Indiana, George causes an accident that leaves the other motorist with $35,000 in bodily injuries and $12,000 in property damage. How much will George's liability coverage pay the other driver? A. $25,000 for bodily injuries and $12,000 for property damages B. $5,000 for bodily injuries and nothing for property damages
C. $20,000 for bodily injuries and $10,000 for property damages D. $25,000 for bodily injuries and $10,000 for property damages - ✔✔A Jared hopes to purchase a new insurance policy for his car, but he has an extremely poor driving record. The insurance company decides to issue Jared an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing: A. risk retention. B. risk avoidance. C. risk reduction. D. risk transference. - ✔✔A Which of the following statements about MPCI is FALSE? A. MPCI is a form of crop-revenue insurance. B. MPCI is subsidized by the FCIC and regulated by the USDA.
