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Terms in this set (151)
Which of the following is a "newly the named insured's private passenger car
acquired auto"?
the named insured's motorcycle
the named insured's private
passenger car
the named insured's rental car
the named insured's company car
After Hazel transfers full ownership Will not pay Hazel because she had no insurable
in her house to her son Jimmie, interest in the home at the time of the loss.
Hazel continues to pay the premium
on a policy that lists the house and
lists only Hazel as the named
insured. If the house is damaged,
the insurer
Will pay Hazel and subrogate
against Jimmie.
Will pay Hazel because she had an
insurable interest in the house when
she first bought the policy.
Will pay Jimmie and subrogate
against Hazel.
Will not pay Hazel because she had
no insurable interest in the home at
the time of the loss.
,After considering whether to add Costs of removing property for safekeeping
an earthquake endorsement to his when an earthquake is expected.
homeowners policy or to buy a
separate California Earthquake
Association (CEA) policy, Rick
chose the CEA policy because it
includes limited coverage for all the
following additional coverages,
EXCEPT:
What is the basic principle Prediction becomes more accurate as the
underlying the law of large number of exposure units increases.
numbers?
Prediction becomes more accurate
as the number of exposure units
decreases.
Prediction becomes less accurate
as the number of exposure units
increases.
Prediction becomes more accurate
as the number of exposure units
increases.
Prediction is most accurate when
the number of exposure units
stabilizes.
,Maria intends to buy a dwelling DP 3
policy on some rental property she
owns. She tells her agent she wants
the broadest coverage possible.
Which policy form should the agent
recommend?
DP 1
DP 2
DP 3
Broad Form HO policy
A general liability policy covers all professional liability
the following exposures EXCEPT:
premises and operations liability
professional liability
products and completed
operations liability
contractual liability
Jack takes his computer to Atlas no benefit to bailee clause
Computer Repair to have it
repaired. The computer is damaged
while at the repair shop. Atlas tells
Jack that his homeowners coverage
will cover Atlas since Atlas is a third-
party beneficiary of the policy.
What provision in Jack's
homeowners policy will eliminate
coverage in this situation?
loss payee clause
no benefit to bailee clause
liberalization clause
definitions
, Dr. Lenard purchased an Assignment.
commercial general liability policy
on his office. With his insurer's
consent, Dr. Lenard is able to
transfer his interest in the policy to
Dr. Brown. Which of the following
policy provisions applies in this
case?
Concurrent.
Assignment.
Transfer of risk.
Liberalization.
A vessel owned by Del Mar constructive total loss
Shipping was damaged during a
storm. Adjusters have determined
that the cost of salvaging the cargo
is more than the value of the cargo.
What type of loss did Del Mar
Shipping suffer?
constructive total loss
actual total loss
actual total loss
partial average
Diane's agency agreement express authority
specifically gives her the authority
to collect insurance premiums. This
type of authority is called:
apparent authority
implied authority
inherent authority
express authority
Answers | Verified | Latest Update 2026
Save
Terms in this set (151)
Which of the following is a "newly the named insured's private passenger car
acquired auto"?
the named insured's motorcycle
the named insured's private
passenger car
the named insured's rental car
the named insured's company car
After Hazel transfers full ownership Will not pay Hazel because she had no insurable
in her house to her son Jimmie, interest in the home at the time of the loss.
Hazel continues to pay the premium
on a policy that lists the house and
lists only Hazel as the named
insured. If the house is damaged,
the insurer
Will pay Hazel and subrogate
against Jimmie.
Will pay Hazel because she had an
insurable interest in the house when
she first bought the policy.
Will pay Jimmie and subrogate
against Hazel.
Will not pay Hazel because she had
no insurable interest in the home at
the time of the loss.
,After considering whether to add Costs of removing property for safekeeping
an earthquake endorsement to his when an earthquake is expected.
homeowners policy or to buy a
separate California Earthquake
Association (CEA) policy, Rick
chose the CEA policy because it
includes limited coverage for all the
following additional coverages,
EXCEPT:
What is the basic principle Prediction becomes more accurate as the
underlying the law of large number of exposure units increases.
numbers?
Prediction becomes more accurate
as the number of exposure units
decreases.
Prediction becomes less accurate
as the number of exposure units
increases.
Prediction becomes more accurate
as the number of exposure units
increases.
Prediction is most accurate when
the number of exposure units
stabilizes.
,Maria intends to buy a dwelling DP 3
policy on some rental property she
owns. She tells her agent she wants
the broadest coverage possible.
Which policy form should the agent
recommend?
DP 1
DP 2
DP 3
Broad Form HO policy
A general liability policy covers all professional liability
the following exposures EXCEPT:
premises and operations liability
professional liability
products and completed
operations liability
contractual liability
Jack takes his computer to Atlas no benefit to bailee clause
Computer Repair to have it
repaired. The computer is damaged
while at the repair shop. Atlas tells
Jack that his homeowners coverage
will cover Atlas since Atlas is a third-
party beneficiary of the policy.
What provision in Jack's
homeowners policy will eliminate
coverage in this situation?
loss payee clause
no benefit to bailee clause
liberalization clause
definitions
, Dr. Lenard purchased an Assignment.
commercial general liability policy
on his office. With his insurer's
consent, Dr. Lenard is able to
transfer his interest in the policy to
Dr. Brown. Which of the following
policy provisions applies in this
case?
Concurrent.
Assignment.
Transfer of risk.
Liberalization.
A vessel owned by Del Mar constructive total loss
Shipping was damaged during a
storm. Adjusters have determined
that the cost of salvaging the cargo
is more than the value of the cargo.
What type of loss did Del Mar
Shipping suffer?
constructive total loss
actual total loss
actual total loss
partial average
Diane's agency agreement express authority
specifically gives her the authority
to collect insurance premiums. This
type of authority is called:
apparent authority
implied authority
inherent authority
express authority
