Examfx practice test | 93 Questions with 100% Correct Answers

Examfx practice test The Louisiana insurance Guaranty Association Board of Directors are plac ed in office by - ✔✔election and appointment States with monopolistic state workers compensation funds - ✔✔Do not allow private insurers to be licensed to write workers compensation coverage This state provided for a temporary licenses for all of the fol lowing EXCEPT - ✔✔A producer's retirement Which of the following producers will be required to complete continuing education hours to renew his license? - ✔✔A producer licensed 4 years ago who holds only one line of authority. A producer has been notifie d by the commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before facing a fine? - ✔✔10 days Which of the following is NOT considered a misrepresentation as it pertains to unfair trade pract ices? - ✔✔ The Pro rata liability clause is designed to protect the principle of - ✔✔Indemnity When a resident producer changes his residence address, the Insurance Department must be notified within - ✔✔30 days A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an Insurance standpoint, the building is considered. - ✔✔Vacant An insurer publishes intimidating broc hures that portray the insurer's competitions as financially and professionally unstable. Which of of the following best describes this act. - ✔✔Legal, under any circumstances Which bonds are required by courts whenever someone seeks a court order stating another person must or must not dot something? - ✔✔Injunction bond In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? - ✔✔The customer's associates, friends, and neighbors provid e the report's data. An insured relocated to another state for work. However, she still owns and insurers a house in this state, but has had one living in it for 3 months. She is also storing some of furniture and clothes in the house. From an insurance s tandpoint, the insured's house is considered? - ✔✔Unoccupied If a farm building or structure is vacant or unoccupied, which is true? - ✔✔If for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50% Which loss lis ted below would be fully covered by a homeowners policy? - ✔✔$2,000 silver tea set stolen A specific coverage part is listed on the commercial package policy declerations page, but there is no premium shown. What does that mean, - ✔✔There is no coverage. With respect to auto insurance, the term owned autos includes all of the following EXCEPT: - ✔✔A pickup or van titled to and used in the named insured's business A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is now suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do. - ✔✔Pay to defend the policy owner in the lawsuit because liability coverage contains a duty -to-defend provision The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the - ✔✔Conditions What type of information would be found in a policy's insuring agreement? - ✔✔Renewal dates The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to cert ain types of contracts, as long as the injury or damage occurs - ✔✔After the execution of the contract A restaurant is out of business for 3 days after an insured's automobile hits and electrical pole. The pole fails and hits the building, knocking out al l electrical power supply. Which of the following is NOT covered under the insured driver's auto policy? - ✔✔Lost revenues from the restaurant What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations . - ✔✔Experience modification factor Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis? - ✔✔Nonconcurrency