Property/Casualty Illinois for State
Verified Correct Answers & Detailed
- Quiz_________________?
ANSWER✅
LOOK AT ADDITIONAL COVERAGES P 47 IF POSSIBLE
Quiz_________________?
- Newly acquired and constructed (30 days, 250,000 for new buildings, 100,000 for business
personal property)
- Personal effects and property of others (2500)
- Valuable papers and records (2500)
- Property off-premises (10,000)
- Outdoor property (1000 for anything; 250 for plants per)
- Nonowned detached trailer (5000) -
ANSWER✅
Coverage Extensions (BPP)
1
, Quiz_________________?
"amount of reinsurance from Fund must be no less than 200,000 per residence/commercial
line or 15,000 per living unit" -
ANSWER✅
mine subsidence
Quiz_________________?
"an insurance producer is considered to be financing insurance premiums if 10% or more of
the producer's total premium accounts receivable are more than 90 days past due" -
ANSWER✅
Financing premiums
Quiz_________________?
"increasing the benefits, without increasing the costs" -
ANSWER✅
Liberalization Clause
Quiz_________________?
"insurers are required to affirm or deny liabilities on claims within a reasonable time and
must pay within 30 calendar days if the amount of the claim is determined and not in
dispute" -
ANSWER✅
Unfair Claims Practices
Quiz_________________?
2
, "must be in continuous form and in the amount of 2500 or 5% of the premiums brokered in
the previous year (whichever is greater but not to exceed 50,000 aggregate liability) -
ANSWER✅
BOND REQUIREMENTS
Quiz_________________?
"the description of coverage provided and perils" -
ANSWER✅
insuring agreement
Quiz_________________?
"the insured must prove the act is identified as a hate crime on a police report" -
ANSWER✅
hate crimes
Quiz_________________?
(net profit or loss before taxes) + (continuing normal operating expenses to include payroll)
-
ANSWER✅
business income
Quiz_________________?
<500; 20 service charge
500-1000; 30 service charge
>1000; 40 service charge
3
, a premium finance agreement may provide for a delinquency charge not less than $1 nor
more than 5% of any installment in default for more than 5 days -
ANSWER✅
Premium finance service charges
Quiz_________________?
1. Absolute - if you aren't protecting others from it (absolutely something will go wrong;
swiming pool)
2. Strict - deals with product liability; manufacturers/sellers of a product makes an implied
warranty that a product is safe; business is liable for defective products
3. Vicarious- responsible for others' actions; transfer liability to someone with a greater
ability to pay (dog unleashed; children throw party) -
ANSWER✅
3 types of liability
Quiz_________________?
1. Agreement (offer and acceptance; offer when application is submitted, acceptance when
underwriter approves application and issues policy)
2. Consideration (something of value each party gives; insured = payment of premiums and
representations/insurer = promise to pay in a loss)
3. Competent parties (legal age, not inebriated, mentally competent)
4. Legality (lawful reason, not against public policy) -
ANSWER✅
4 elements of a contract
4
Verified Correct Answers & Detailed
- Quiz_________________?
ANSWER✅
LOOK AT ADDITIONAL COVERAGES P 47 IF POSSIBLE
Quiz_________________?
- Newly acquired and constructed (30 days, 250,000 for new buildings, 100,000 for business
personal property)
- Personal effects and property of others (2500)
- Valuable papers and records (2500)
- Property off-premises (10,000)
- Outdoor property (1000 for anything; 250 for plants per)
- Nonowned detached trailer (5000) -
ANSWER✅
Coverage Extensions (BPP)
1
, Quiz_________________?
"amount of reinsurance from Fund must be no less than 200,000 per residence/commercial
line or 15,000 per living unit" -
ANSWER✅
mine subsidence
Quiz_________________?
"an insurance producer is considered to be financing insurance premiums if 10% or more of
the producer's total premium accounts receivable are more than 90 days past due" -
ANSWER✅
Financing premiums
Quiz_________________?
"increasing the benefits, without increasing the costs" -
ANSWER✅
Liberalization Clause
Quiz_________________?
"insurers are required to affirm or deny liabilities on claims within a reasonable time and
must pay within 30 calendar days if the amount of the claim is determined and not in
dispute" -
ANSWER✅
Unfair Claims Practices
Quiz_________________?
2
, "must be in continuous form and in the amount of 2500 or 5% of the premiums brokered in
the previous year (whichever is greater but not to exceed 50,000 aggregate liability) -
ANSWER✅
BOND REQUIREMENTS
Quiz_________________?
"the description of coverage provided and perils" -
ANSWER✅
insuring agreement
Quiz_________________?
"the insured must prove the act is identified as a hate crime on a police report" -
ANSWER✅
hate crimes
Quiz_________________?
(net profit or loss before taxes) + (continuing normal operating expenses to include payroll)
-
ANSWER✅
business income
Quiz_________________?
<500; 20 service charge
500-1000; 30 service charge
>1000; 40 service charge
3
, a premium finance agreement may provide for a delinquency charge not less than $1 nor
more than 5% of any installment in default for more than 5 days -
ANSWER✅
Premium finance service charges
Quiz_________________?
1. Absolute - if you aren't protecting others from it (absolutely something will go wrong;
swiming pool)
2. Strict - deals with product liability; manufacturers/sellers of a product makes an implied
warranty that a product is safe; business is liable for defective products
3. Vicarious- responsible for others' actions; transfer liability to someone with a greater
ability to pay (dog unleashed; children throw party) -
ANSWER✅
3 types of liability
Quiz_________________?
1. Agreement (offer and acceptance; offer when application is submitted, acceptance when
underwriter approves application and issues policy)
2. Consideration (something of value each party gives; insured = payment of premiums and
representations/insurer = promise to pay in a loss)
3. Competent parties (legal age, not inebriated, mentally competent)
4. Legality (lawful reason, not against public policy) -
ANSWER✅
4 elements of a contract
4
