NH PROPERTY & CASUALTY
INSURANCE #2 QUESTIONS &
ANSWERS(RATED A+)
Surety bonds are written for a definite limit called - ANSWERThe bond of penalty
Replacement cost is defined as - ANSWERFull replacement of property at its current
cost, new and without reduction for depreciation
All of the following statements concerning coinsurance are true EXCEPT -
ANSWERThe coinsurance formula will also be applied to total losses.
All of the following statements regarding a boatowners policy are true EXCEPT -
ANSWERReplacements for the boat listed in the Declarations are automatically
covered, if the insured notifies the insurer within 60 days and pays the additional
premium.
A participating insurance policy may do which of the following? - ANSWERPay
dividends to the policyowner
Who is NOT an insured for liability on a BAP? - ANSWERThe owner of a car the
insured borrows
Who assumes control over an insurance company's funds and management if they
become insolvent? - ANSWERDepartment of Insurance
Which of the following persons may be covered under farm Coverage J? -
ANSWERResident employees
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - ANSWERCoverage E
According to agency law, the producer always represents the - ANSWERInsurance
Company
Within how many days after receiving a notice of cancellation for an auto insurance
policy may an insured request a hearing with the Commissioner? - ANSWER10
Days
Which method of loss valuation is contrary to the basic concept of indemnity? -
ANSWERReplacement cost
, The individual named insured endorsement under a commercial auto policy provides
coverage for which of the following? - ANSWERThe sole proprietor of the business
and their family members
A parking garage owner completed major renovations to a parking garage just prior
to selling it to another company. Three months later, overhead concrete fell onto cars
in the second floor level. Under the garage coverage policy conditions, which of the
following is true? - ANSWERThe damage occurred when the concrete fell.
Joe did not remember to renew his insurance license before the due date. What
must he do now to reinstate the license without having to take a written exam? -
ANSWERPay double the amount of the unpaid renewal fee within 24 months of the
due date
Which of the following is NOT included in the definition of an "auto" under a
commercial auto policy? - ANSWERMobile equipment
If a financial institution offers insurance in connection to a loan or extension of credit,
the customer's ability to choose a competing insurance policy must be -
ANSWERExpressly acknowledged.
What type of bond guarantees that a construction contractor will enter into a contract
at a set price? - ANSWERBid bond
All of the following are regulated areas of the insurance industry EXCEPT -
ANSWERCommissions
According to the Insured Duties after a Loss provision in homeowners policies, if the
insurer requires a signed, sworn proof of loss, the insured must provide within how
many days? - ANSWER60 days
Under workers compensation, what is the maximum benefit amount for the burial of
a deceased worker? - ANSWER$10,000
An endorsement added to a businessowners policy that provides coverage for direct
damage caused by utility service disruption stemming from a covered peril is called -
ANSWERUtility Services - Direct Damage
What is the basic limit for costs incurred at the place a vehicle is disabled provided
by the towing and labor costs endorsement? - ANSWER$25
Farm fences (except field and pasture fences) are covered by which farm coverage
form? - ANSWERCoverage G
Which of the following is a mandatory risk-sharing pool for commercial auto
exposures? - ANSWERThe New Hampshire Commercial Auto Insurance Plan
Why don't commercial auto coverage forms automatically include medical payment
coverage? - ANSWEROften, any person occupying a commercial vehicle would be
covered under a workers compensation policy.
INSURANCE #2 QUESTIONS &
ANSWERS(RATED A+)
Surety bonds are written for a definite limit called - ANSWERThe bond of penalty
Replacement cost is defined as - ANSWERFull replacement of property at its current
cost, new and without reduction for depreciation
All of the following statements concerning coinsurance are true EXCEPT -
ANSWERThe coinsurance formula will also be applied to total losses.
All of the following statements regarding a boatowners policy are true EXCEPT -
ANSWERReplacements for the boat listed in the Declarations are automatically
covered, if the insured notifies the insurer within 60 days and pays the additional
premium.
A participating insurance policy may do which of the following? - ANSWERPay
dividends to the policyowner
Who is NOT an insured for liability on a BAP? - ANSWERThe owner of a car the
insured borrows
Who assumes control over an insurance company's funds and management if they
become insolvent? - ANSWERDepartment of Insurance
Which of the following persons may be covered under farm Coverage J? -
ANSWERResident employees
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - ANSWERCoverage E
According to agency law, the producer always represents the - ANSWERInsurance
Company
Within how many days after receiving a notice of cancellation for an auto insurance
policy may an insured request a hearing with the Commissioner? - ANSWER10
Days
Which method of loss valuation is contrary to the basic concept of indemnity? -
ANSWERReplacement cost
, The individual named insured endorsement under a commercial auto policy provides
coverage for which of the following? - ANSWERThe sole proprietor of the business
and their family members
A parking garage owner completed major renovations to a parking garage just prior
to selling it to another company. Three months later, overhead concrete fell onto cars
in the second floor level. Under the garage coverage policy conditions, which of the
following is true? - ANSWERThe damage occurred when the concrete fell.
Joe did not remember to renew his insurance license before the due date. What
must he do now to reinstate the license without having to take a written exam? -
ANSWERPay double the amount of the unpaid renewal fee within 24 months of the
due date
Which of the following is NOT included in the definition of an "auto" under a
commercial auto policy? - ANSWERMobile equipment
If a financial institution offers insurance in connection to a loan or extension of credit,
the customer's ability to choose a competing insurance policy must be -
ANSWERExpressly acknowledged.
What type of bond guarantees that a construction contractor will enter into a contract
at a set price? - ANSWERBid bond
All of the following are regulated areas of the insurance industry EXCEPT -
ANSWERCommissions
According to the Insured Duties after a Loss provision in homeowners policies, if the
insurer requires a signed, sworn proof of loss, the insured must provide within how
many days? - ANSWER60 days
Under workers compensation, what is the maximum benefit amount for the burial of
a deceased worker? - ANSWER$10,000
An endorsement added to a businessowners policy that provides coverage for direct
damage caused by utility service disruption stemming from a covered peril is called -
ANSWERUtility Services - Direct Damage
What is the basic limit for costs incurred at the place a vehicle is disabled provided
by the towing and labor costs endorsement? - ANSWER$25
Farm fences (except field and pasture fences) are covered by which farm coverage
form? - ANSWERCoverage G
Which of the following is a mandatory risk-sharing pool for commercial auto
exposures? - ANSWERThe New Hampshire Commercial Auto Insurance Plan
Why don't commercial auto coverage forms automatically include medical payment
coverage? - ANSWEROften, any person occupying a commercial vehicle would be
covered under a workers compensation policy.
