Connecticut Test 2

1.

2 points

Mr. Jones has injured a claimant in an auto accident. The claimant has sustained medical expenses, loss of wages, and the loss of use of his vehicle. These types of expenses are called:

Special Damages.

General Damages.

Exemplary Damages.

Punitive Damages.

2.

2 points

Under the Federal Fraud Act, if someone is prohibited from doing business in a state, approval to resume business must be granted by:

Attorney General.

Secretary of Treasury.

Insurance Regulatory Official.

Secretary of State.

3.

2 points

Which of the following is correct concerning the appraisal process under a business automobile policy:

I. Only the named insured can make a written demand that the appraisal method by used.

II. The appraisal method cannot be used when the dispute is whether the loss is covered, rather than the amount of damages.

II only.

Both I and II.

I only.

Neither I nor II.

4.

2 points

Which of the following injuries would be paid under the Liability section of the Personal Auto Policy?

Injuries to a member of the insured’s family

Injuries to the insured

Injuries to the person the insured hit

Damage to the personal property transported by the insured.

5.

2 points

All of the following would be covered under the commercial auto policy, except:

An employee using an employer's vehicle.

A partner using a company vehicle while on company business.

A partner using his own vehicle running a personal errand.

An executive using a company vehicle on company business.

6.

2 points

A deductible usually applies to which of the following automobile policy coverages?

Bodily Injury Liability

Physical Damage

Medical Payments

Property Damage Liability

7.

2 points

Which of the following can be categorized as liability doctrines?

Strict

Vicarious

Res Ipsa Loquitur

All of the responses are liability doctrines

8.

2 points

All of the following are basic types of construction Except:

Frame

Retro Sided

Joisted Masonry

Fire Resistive

9.

2 points

Which of the following is true regarding the Homeowners (HO-5) Form?

Provides broad form peril coverage on the buildings and named peril coverage on their contents.

Provides open peril coverage on buildings and broad form peril coverage on their contents.

Provides open peril coverage on the buildings and their contents.

Provides broad form peril coverage on the buildings and their contents.

10.

2 points

Dram shop liability refers to:

Damage to property of others

Liquor law liability

Personal injury

Bodily injury

11.

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:

10 days of the request of the consumer

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

30 days of the request of the consumer

15 days of the request of the consumer

12.

2 points

When is it allowed for a telemarketer to call to a person's home?

8 a.m. to 9 p.m.

7 a.m. to 7:45 a.m.

10 p.m. to 11 p.m.

9:15 p.m. to 10 p.m.

13.

2 points

The portion of a covered claim that the insured retains is known as what?

Consideration

Risk

Endorsement

Deductible

14.

2 points

An adjuster's license will usually be revoked for which of the following?

Failing to Report a Change of Address

Denying Claims That Are Not Covered

Having Been Convicted of a Misdemeanor

Having Been Convicted of a Felony

15.

2 points

A homeowner moves into a new house built by a contractor. Shortly after moving in, the roof leaks and damages the contents. What coverage might the contractor carry that could respond to cover some of this claim?

Contractual Coverage

Operations Coverage

Completed Operations Coverage

Personal Injury Coverage

16.

2 points

Automobile Medical Payments covers:

The insured as a pedestrian only.

The insured as an occupant of a car only.

An occupant of the insured vehicle only.

The insured as an occupant of a car, an occupant of the insured vehicle and the insured as a pedestrian when hit by a car.

17.

2 points

When the Commissioner issues a cease and desist order, what penalty may also apply if the violation was not considered to be intentional?

$10,000

$5,000

$2,000

$3,500

18.

2 points

An independent adjuster represents the interest of:

Both the insured and the insurer.

The insurer.

The public.

The insured.

Hamburgers

19.

2 points

You are the adjuster and you are contacted by a claimant and advised that he has fired his attorney and wants to proceed to negotiate the claim directly with you. As an adjuster, what should you do?

Advise Them to Obtain Other Counsel

Request a “drop letter”

Do Not Proceed to Adjust the Claim

Proceed to Adjust the Claim

20.

2 points

A covered auto requires $700 in repairs because of damage done by a limb from a dead tree that fell on it. The auto’s BAP coverage has a $100 comprehensive deducible and a $250 collision deductible. Assuming that the ACV and replacement cost of the vehicle is $700, the insurer will pay:

600

450

700

0

21.

2 points

Under the financial responsibility law, the minimum limit of liability for auto insurance covering property damage is:

$40,000

$10,000

$20,000

$50,000

$100,000

22.

2 points

Which of the following would be considered an “unfair claims” practice in Connecticut?

Refusing to pay claims without conducting a reasonable investigation based upon all available information

Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies

Failing to acknowledge and act with reasonable promptness upon communications with respect to claims arising under insurance policies

All of the responses are correct.

23.

2 points

Which of the following statements is correct regarding liability concepts?

The insurer may refuse to pay the cost to defend or settle a claim if the type of loss is not covered by the policy.

The insurer must defend or settle all claims brought against the insured during the policy period.

The insurer must defend or settle all claims brought against the insured for up to five years beyond the policy period.

The insurer may refuse to defend or settle a claim until the court establishes legal liability.

24.

2 points

The "outside the premises" policy insuring agreement covers:

Loss of money and securities and other property outside the premises.

Theft of money and securities while outside the premises.

Loss of money and other property off the premises caused by employee dishonesty.

Loss of other property by robbery outside the premises.

25.

2 points

Businessowners policies provide removal coverage when property is removed from the premises to protect it from loss. The coverage will apply at other locations for up to:

60 days

20 days

30 days

One million days

10 days

26.

2 points

Under the Personal Auto Form, all of the following would be covered under Part B - Medical Payments, EXCEPT:

Injuries sustained by the insured's mother when a tree falls on the automobile while she is sitting inside the automobile while it is parked in the driveway.

Injuries sustained by a neighbor who carpools with the insured and who, while getting into the insured's car, slips, falls, and injures her knee.

Injuries sustained by the insured when using his father’s pickup truck to pick up furniture he recently purchased.

Injuries sustained by an elderly man riding in the insured vehicle after having paid the insured to take him to the grocery store.

27.

2 points

Which of the following statements is not correct regarding uninsured motorist coverage in Connecticut?

Must include underinsured motorist coverage

Can be rejected

Higher limits must be offered

Coverage can be reduced by the insured in writing

28.

2 points

Under a commercial general liability policy, personal and advertising injury liability coverage does NOT apply to damages resulting from:

Copyright infringement by a department store.

Harmful, truthful information published by a realtor.

Invasion of an individual's privacy.

Slanderous statements made by an advertising firm.

29.

2 points

What is a significant purpose of a reporting form under the dealer's physical damage coverage under the garage policy?

They increase the amount of time an insured has to report a claim

To provide guidance to the insured in reporting garage claims.

To deal with changing values of autos held for sale.

To guard against theft at auto dealerships.

30.

2 points

Under the CGL policy which of the following is true?

I. Employees in the course of their employment are "insureds."
II. The coverage is always written on a claims-made basis.

I only

II only

Both I and II

Neither I nor II

31.

2 points

Homeowner policies provide coverage for all of the following basic types of risk that a property owner faces, EXCEPT:

Direct physical damage to property

Liability risk for the financial cost of another’s injuries

Property loss because of robbery, theft or burglary

Medical risk for the bodily injury to family members

32.

2 points

Medical payments under the general liability policy might pay for medical expenses incurred by:

The named insured

A tenant residing on the insured’s premises

An employee of the named insured

A customer of the named insured

33.

2 points

Gordon’s Carpentry built a garage. Two weeks after the work was completed, the garage collapsed and damaged the customer’s car and other equipment in the garage. Gordon's general liability coverage would not apply to:

The damage to the car

The damage to the other equipment

The damage to the garage

All of the responses are covered damages.

34.

2 points

In a liability policy, the limits of coverage can be expressed as all of the following EXCEPT:

Restricted

Single

Aggregate

Split

35.

2 points

What is not considered case law?

Law based on new trials yet to be decided.

Law based on higher court rulings

Law laid down in the decisions of courts

Law based on trials that have been decided.

36.

2 points

Which of the following is not a duty of an insurer in case of a loss?

Separate the damaged property from the undamaged property and protect the property from further loss.

Acknowledge receipt of a claim in a timely fashion.

Conduct a thorough investigation

Establish claim procedures and methods of documentation.

37.

2 points

The basic limit for Medical Payments under Coverage F of the HO forms is normally:

$2,500 per person.

$500 per person.

$5,000 per person.

$1,000 per person.

38.

2 points

A reservation of rights letter:

Is the same as a non-waiver but is mailed rather than obtained in person

States that the policy holder's policy does not defend against meritless lawsuits

Informs the policyholder that the insurance company will defend him/her in a lawsuit but that certain aspects of the lawsuit may not be indemnified (covered)

Reserves the company's right to cancel the policy at resolution of a claim or lawsuit

39.

2 points

The physical damage coverage for an auto dealer’s vehicles held for sale is covered on the garage policy:

All owned autos

Scheduled basis

Blanket basis

All owned and non owned autos

40.

2 points

Employee dishonesty coverage does not include:

Money stolen by the employee on the way to the bank

Embezzlement of money

Inventory shortage caused by the employee

Robbery of an employee

41.

2 points

Risk is best defined as:

An undesirable insured.

Hamburger

A hazardous exposure.

An uncertainty of loss.

A cause of loss.

42.

2 points

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

Can be used to cover trucker's risks.

One or more of ten symbols triggers coverage.

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

Can be modified to cover equipment dealer risks.

43.

2 points

Which of the following would be considered a "supplementary payment" coverage under a business auto policy?

Payment for an insured employee's truck being used by the employee on a business-related trip

Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company

Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused

All post-judgment interest in a suit defended by the insurer

44.

2 points

Watercraft owned by the insured are excluded from coverage under a general liability policy except when the watercraft is:

Ashore on the insured’s premises

Being raced in an organized sporting event

In the water

On a public roadway on a trailer

45.

2 points

The Main Street Department store carries a bond covering all of its employees. The bond limit is $10,000. Three employees acting in collusion steal $30,000. How much will be paid under the policy?

$15,000

$30,000

$10,000

$20,000

$1,000,000

46.

2 points

When may an insured sue an insurance company?

Anytime

Within the time limits provided by the statute of limitations

Within three years of the claim

Not until the insured has complied with all policy provisions and within the time limit specified in the state laws

47.

2 points

When is it appropriate for an adjuster to secure a non-waiver agreement with the insured?

If the adjuster senses the claim may be fraudulent in nature

If there is a question of coverage

If the adjuster is unsure of coverage

When the adjuster has verified coverage

48.

2 points

The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000 liability loss not covered under the insured's personal auto policy, but covered under the umbrella policy, the insurance company would pay:

$3,000.

$5,000.

$1,000.

$2,000.

49.

2 points

Which of the following is least likely to be considered "transacting insurance" under most state laws?

A person negotiates with insurers to get the best quotes for clients.

A person completes applications and transmits them to insurers.

A person mails renewal policies to clients.

A person presents insurance quotations to applicants.

50.

2 points

What type of coverage would a physician, surgeon, or dentist require?

Commercial

Homeowners endorsement

Professional

Businessowner’s