Connecticut Practice Test 1

1.

2 points

Mr. Johnson has a “Towing and Labor Charges Coverage Endorsement” added to his Personal Auto Policy indicating $50 coverage for his only covered auto. One day his auto becomes disabled along the highway and he has it towed to a nearby service garage for repair. If the towing charge is $15 and the repair charge is $50, how much will the insurance company pay?

50

25

15

1,000,000

65

2.

2 points

The insured is covered under a BOP for $200,000 on his building. The risk is completely destroyed by fire. It will cost $225,000 to replace the building. The cost to remove the debris is $25,000. How much, if any, will the company pay for this loss?

$210,000

$1,000,000.99

$200,000

$225,000

3.

2 points

According to the terms of Homeowner policies, which of the following is NOT considered to be a fortuitous loss?

Smoke

Explosion

Fire

Smog

4.

2 points

Information provided by the insured in a proof of loss is considered:

A representation.

A warranty.

An assignment.

An agreement.

5.

2 points

Under the HO-3, what percentage of Coverage A is written as the Coverage D limit (loss of use)?

20 percent

30 percent

40 percent

25 percent

6.

2 points

The HO-3 (special) covers which of the following that the HO-4 (tenant) does not?

Automobiles

Work related injuries

Motorcycles

Dwellings

7.

2 points

The maximum seating capacity and total floor space for a fine dining restaurant covered under a BOP is?

75

150

75 seats with 7,500 total square feet

150 seat with 7,500 total square feet

1 million seats with 1 million total square feet

8.

2 points

You are at home having your roof repaired. An employee of the roofing company needs to go to the hardware store to purchase supplies. Your car is blocking the driveway so you allow him to use your car to go to the store. While driving your car, he is at-fault in an auto accident. Your insurance policy will protect:

Hamburgers.

Only the employee will be protected.

Only you the insured will be protected.

Both you and the insured will be protected.

All of the parties would be protected by your policy.

9.

2 points

The insured awoke and found that a water line on his side of the water meter has broken. Several thousand gallons of water have escaped. The water company bills the insured for the loss of the water since the breakage occurred on their side of the meter. Their insurance company will:

Laugh and give the insured a bucket

Apply a deductible to the loss of the water.

Subrogate against the plumber that installed the water line.

Not pay for the loss of water.

Pay for the loss of the water.

10.

2 points

Which one of the following alleged negligence cases more than likely is valid?

A large oak tree in Wilbur’s yard was struck by lightening. A limb was severed and remained suspended across two other limbs. Three months later, it fell and hit a neighbor’s car. Wilber was charged with negligence.

A farmer was plowing his field when he looked up and saw the car of his neighbor, Marie, collide with a truck. While he was distracted by the accident, he injured his foot in the plow. Marie was charge with negligence for the farmer’s injury.

Vicki sued Donna because Donna playfully threatened her with a toy gun.

The side of a hill washed from Jake’s property onto Vera’s driveway, blocking the entrance to her garage. Jake is charged for damages.

11.

2 points

Hired car liability under the business auto policy will cover all of the following for liability, except:

A rental car that the named insured rents at the airport when he arrives in Any City for a sales seminar.

A pick-up truck leased to the Service Department for use in making service calls.

A new SUV owned by an employee, that he is using until the insured company can make a purchase of an SUV to be used in the department of the employee.

A service van that the named insured rents for two months while waiting for delivery of a new van, which is on backorder from the manufacturer.

12.

2 points

Under the Underinsured Motorist Limit, how much will be paid on a claim providing the insured has proper limits in place?

50% of the underinsured limit.

The amount of the claim, up to the limit of coverage.

A percentage of the claim.

Nothing unless the other party is not insured.

One million dollars in Hamburgers.

13.

2 points

An unendorsed Homeowner Policy provides no coverage for liability arising out of business related exposures, other than for permitted incidental occupancies. The ______Endorsement provides liability coverage for a business conducted away from the residence premises.

Adventures in Babysitting

Permitted Incidental Occupancies

Business Pursuits

Home Day Care

Personal Injury

14.

2 points

The initial job for the adjuster in the investigation of a loss is to determine:

Negligence

Liability

Punitive damages

Hamburgers

Coverage

15.

2 points

An insurer desires to non-renew a policy issued to a Connecticut insured. Which of the following is an untrue statement?

The notice must be sent by registered or certified mail

Must provide a 60-day advance notice to the first named insured

Must be sent to the address shown on the policy

Must provide a 45-day advance notice to the first named insured

16.

2 points

An insured has received actual cash value payment from the adjuster for a covered loss. At the time he is satisfied with the payment. He later changes his mind and wants the full replacement value. How many days does he have to submit the receipts to get the replacement cost payment under a HO-3 form?

365 days

30 days

1 billion days

180 days

60 days

17.

2 points

If there is other insurance applicable to a claim covered by the named insured’s CGL policy, the policy:

Will not provide medical payments coverage

Will not cover the claim

Is excess over any other liability insurance

May be either primary or excess depending on what other kinds of insurance apply

18.

2 points

Which of the following statements is true regarding the business auto policy?

Can be modified to cover equipment dealer risks.

Can be used to cover garage risks including garagekeeper's legal coverage.

One or more of ten symbols triggers coverage.

Can be used to cover trucker's risks.

19.

2 points

Tom purchases an auto policy with limits of 25/50/25 and his wife Jane also purchases a policy with limits of 50/100/25. Both policies cover the same covered autos. Tom & Jane are not aware what the other has purchased. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if these two people are sued by the injured parties?

Depends on who was driving, Tom or Jane as to what liability limit applies

150,000 which is the maximum bodily injury limit per accident for the two policies combined

Nothing as this seems to be a fraud situation

If the policies are from the same company, Jane’s limit of $100,000 being the highest of the two would apply

20.

2 points

Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is:

Spiderman.

Fraud.

Malfeasance.

Concealment.

Material misrepresentation.

21.

2 points

An insurance company that intends to non-renew a policy must take which of the following actions?

Obtain coverage for the policyholder under the FAIR Plan.

Send a written notice to the insured stating the reason for non-renewal.

Obtain coverage for the policyholder from another insurance company.

Provide a list of other insurance companies that might provide a market for the coverage.

Post notice in the local paper with a photo of the named insured.

22.

2 points

The burden of proof in determining the value of property and the cause of loss lies with:

The adjuster.

The insured.

The arbitrator.

The insurer.

23.

2 points

What is “express” authority under the law of agency?

The authority the general public assumes the agent has

Allows the agent to perform all of the usual tasks required to sell and service an insurance contract

The authority given to the agent by the company in a written contract or orally

The authority granted by the Insurance Commissioner in the issuance of an insurance license

24.

2 points

The Now Company carries a special BOP policy with a liability limit of $500,000. The company is involved in an accident causing $200,000 bodily injury damage and $200,000 property damage. The total amount collectible under the policy is:

$200,000

$500,000

$100,000

$400,000

25.

2 points

The plumbing in Mrs. Jones' home suddenly burst and the ceilings were damaged by water. All of the following Homeowners forms would cover the loss, EXCEPT an:

HO-3 form.

HO-2 form.

HO-8 form.

HO-5 form.

26.

2 points

The BOP liability limits are $500,000 per occurrence and $1,000,000 aggregate. The losses for the policy term are $100,000, $750,000 and $400,000. What is the correct amount the insurance company pays for all three losses?

$1,250,000

$500,000

$1,000,000

$750,000

27.

2 points

What symbol is used for a non-owned auto in a commercial automobile policy?

Symbol 9.

Symbol 1.

Symbol 5.

Symbol 8.

28.

2 points

When a first party claim is made, what must be listed on the payment draft?

Drivers License Number

Type of coverage under which payment is made.

Details of the Accident

Application of the Deductible

29.

2 points

When a tort action is brought before the court the jury may be given the opportunity to assess damages against the defendant which amount to more than the actual cash value of the damages suffered by the plaintiff. These damages are called:

Exemplary damages

Extraterrestrial damages

Punitive damages

General damages

Additional damages

30.

2 points

A threat of violence or injury in the act of stealing is called:

Burglary.

Robbery.

Violent theft.

Theft.

31.

2 points

Under the comprehensive coverage of a business auto policy, which of the following would not be a covered loss?

Electrical wiring in the vehicle catches fire when the ignition is turned on.

After sliding on icy pavement, a driver hits a guardrail.

Your mom calls and says that she nolonger loves you.

A vehicle has its tires slashed by an undetermined person.

All four tires are removed and a truck is put on blocks while it is parked over the weekend, even though there is no evidence of forcible entry into the company parking lot.

32.

2 points

Which of the following claims would not be covered by the liability Section II of a Homeowner’s Policy?

An insured accidentally runs over his neighbor with a golf cart at the local country club.

The insured’s neighbor files a claim for damage to his house caused by the named insured’s dog.

An insured’s dog attacks and damages his neighbor’s golf cart.

The named insured files a claim for damage to his house caused by his dog.

33.

2 points

If an insured wishes to cover the mobile home while it is being transported from one location to another would:

No coverage is available anywhere. Mobile homes are lame.

Purchase an endorsement on the auto policy transporting the mobile home

Purchase Motor Truck Cargo coverage from the company transporting the mobile home.

Purchase Inland Marine coverage since the home is in motion on the land

Purchase the Mobile Home Transportation Coverage Endorsement on the homeowner policy

34.

2 points

Which of the following words would be closely associated with estoppel?

Retroactive

Release

Ham

Waiver

Subrogation

35.

2 points

The insured owns a road scraper used for road construction. The state requires that the vehicle be licensed and registered. How must this piece of machinery be covered for liability coverage?

Inland Marine Policy

A Commercial Auto Policy

Modified General Liability Policy

Commercial Umbrella Policy

36.

2 points

Offering anything of value to a perspective insurance client to induce the client to purchase insurance is called:

Discrimination.

Churning.

Twisting.

Rebating.

37.

2 points

A non-waiver agreement allows the insurer to:

Decline to investigate due to coverage exclusions

Investigate a loss without implying that it is covered

Hire a public adjuster to protect his interests

Cover an endorsement for hamburgers.

Hire an attorney to protect his rights

38.

2 points

Which of the following businesses would be eligible for a businessowners policy?
I. Doughnut shop.
II. Wholesale florist.
III. Barber shop.
IV. Taxidermist.

I and III only

II and III only

I, II, III, and IV

Why are we using roman numerals?

I, II, and III only

39.

2 points

A company's promise to "pay for damage caused by or resulting from any covered cause of loss" would be found in which of the following sections of a policy?

Exclusions

Declarations

Conditions

Insuring Agreement

40.

2 points

In which of the following situations should a non-waiver agreement be used?

An insured’s roof blew off in a tornado

An insured’s picture window was broken by a neighbor throwing a baseball

An insured’s house burned to the ground

An insured’s house shows rot damage, and it appears there is a long-term plumbing leak

41.

2 points

In order for coverage to apply under an occurrence commercial umbrella liability policy:

First notice of the claim must be made during the policy period.

The injury must take place before the policy period.

The occurrence causing the injury or damage must take place during the policy period.

A claim for actual damages must be made before the retroactive date.

42.

2 points

Which of the following statements is false concerning the business auto coverage part?

It may be used to cover specifically described autos only.

If written to cover "any auto", non-owned and hired autos are automatically covered.

Medical payments coverage is automatically provided.

Whether newly acquired autos are automatically covered depends upon the applicable coverage symbol.

43.

2 points

The Personal Auto Policy, under Supplementary Payments:

Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured

Will not pay for loss of earnings while testifying at a trial

Will pay the insured $100 per day for loss of earnings while testifying at trial

None of the responses are correct.

44.

2 points

A licensee who does business under any name other than the licensee's legal name must:

Present the adverse carrier with intent to subrogate

Notify the Govenor before using the assumed name

Notify the Commissioner before using the assumed name

45.

2 points

Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated?

Assist in separating the damaged property from the undamaged property

Advanced Payment

Open-Ended Release

Credit Card

No Release or Walk-Away

46.

2 points

The insured is conducting business on the premises of his bank. He is depositing checks and money into his account. Before the transaction is completed a thief comes in and holds up the bank and takes the insured’s property. The insured is covered under Insuring Agreement 3 “Inside the Premises Theft of Money and Securities." What will the insurance company do?

The loss will be denied because the insured was on the banks premises and not his own

The loss is covered because the definition of premises includes premises where the insured is conducting business

The funds will be covered once they are in the insured’s custody and he is on the way to or from the bank

The company will suggest another endorsement adding the bank as an “insured” location

47.

2 points

Which situation could be covered by Kim’s general liability insurance?

Kim drives her Dodge sedan into a picket fence, and the fence is destroyed

Mitch slips and falls on Kim’s slippery kitchen floor.

Kim watches too much TV and skips work for a week.

A client slips and falls in Kim’s design studio.

Kim is injured when she falls from a stepladder at work in her design studio.

48.

2 points

In commercial automobile insurance, medical payments limits apply:

Per hamburger.

Per person, per accident.

Per person, per year.

Per accident, per year.

Per year.

49.

2 points

Upon request made by the consumer, a person who procures an investigative consumer report on the consumer must make a complete and accurate disclosure of the nature of the report and investigation within:

30 days of the request of the consumer

15 days of the request of the consumer

10 days of the request of the consumer

In writing and mailed to the consumer within 5 days of the request.

50.

2 points

What is an insurance producer’s "implied authority"?

Those specified in a contract with the insuer.

Authority given by the principle to the agent that is not formally expressed or communicated.

The authority that the producer believes it has.

The authority that the public reasonably believes the producer has.