XCEL Final Exam
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following
EXCEPT - Answer-additional premiums
Which of the following statements are NOT true regarding the limited fungi, wet or dry rot , or bacteria
coverage - Answer-HO 04 26 endorsement is used with HO 03 forms
A "repair cost policy" is a home insurance policy in which the insurance carrier bases the coverage -
Answer-on the property's market value
B has a property policy and would like to know the perils are covered. B should read the - Answer-
Insuring Clause
All of the following is CORRECT about Market Value EXCEPT - Answer-An insured's home valuation is
based upon purchase price of the home
The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with
all policy conditions. This makes the policy a - Answer-conditional contract
The endorsement changes the Intentional Loss Exclusion - Answer-In the case of fire losses due to arson,
the endorsement only excludes payment to the insured responsible for loss
All of the following statements about the Supplemental Extended Reporting Period Endorsement are
true EXCEPT - Answer-It extends a midi-tail to 10 total years instead of only 5 years
, Insurance companies determine risk exposure by which of the following - Answer-Law of large numbers
and risk pooling
The primary difference of how employee theft is covered under commercial crime employee insurance
versus government crime employee coverage is - Answer-employee theft is covered as a per loss basis
but government can be covered under both a per loss and per employee basis
In which situation could the producer of an insurer be personally liable - Answer-When the producer
performs an act which is prohibited in the agency contract
Which of the following statements about NFIP deductibles is true? - Answer-There is a deductible
applied to the building and another to the contents under both the emergency and the regular programs
Which of the following is considered to be an event or condition that increases the probability of an
insured's loss? - Answer-Hazard
Effective date of coverage, all endorsements and schedules can be found in the ______ pages of a
Workers comp policy - Answer-Information
According to ISO guidelines, which of the following construction will have the highest rating against fire?
- Answer-Fire Resistive
Which of the following endorsements adds Property Protection Insurance to a personal automobile
policy? - Answer-Property Protection Coverage - Michigan
Any changes of address by a licensee requires notice within 30 days to which of the following - Answer-
Commissioner
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following
EXCEPT - Answer-additional premiums
Which of the following statements are NOT true regarding the limited fungi, wet or dry rot , or bacteria
coverage - Answer-HO 04 26 endorsement is used with HO 03 forms
A "repair cost policy" is a home insurance policy in which the insurance carrier bases the coverage -
Answer-on the property's market value
B has a property policy and would like to know the perils are covered. B should read the - Answer-
Insuring Clause
All of the following is CORRECT about Market Value EXCEPT - Answer-An insured's home valuation is
based upon purchase price of the home
The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with
all policy conditions. This makes the policy a - Answer-conditional contract
The endorsement changes the Intentional Loss Exclusion - Answer-In the case of fire losses due to arson,
the endorsement only excludes payment to the insured responsible for loss
All of the following statements about the Supplemental Extended Reporting Period Endorsement are
true EXCEPT - Answer-It extends a midi-tail to 10 total years instead of only 5 years
, Insurance companies determine risk exposure by which of the following - Answer-Law of large numbers
and risk pooling
The primary difference of how employee theft is covered under commercial crime employee insurance
versus government crime employee coverage is - Answer-employee theft is covered as a per loss basis
but government can be covered under both a per loss and per employee basis
In which situation could the producer of an insurer be personally liable - Answer-When the producer
performs an act which is prohibited in the agency contract
Which of the following statements about NFIP deductibles is true? - Answer-There is a deductible
applied to the building and another to the contents under both the emergency and the regular programs
Which of the following is considered to be an event or condition that increases the probability of an
insured's loss? - Answer-Hazard
Effective date of coverage, all endorsements and schedules can be found in the ______ pages of a
Workers comp policy - Answer-Information
According to ISO guidelines, which of the following construction will have the highest rating against fire?
- Answer-Fire Resistive
Which of the following endorsements adds Property Protection Insurance to a personal automobile
policy? - Answer-Property Protection Coverage - Michigan
Any changes of address by a licensee requires notice within 30 days to which of the following - Answer-
Commissioner
