Oklahoma Exam - 4
A one hundred-year flood is an instance of which of the subsequent forms of chance? -
ANS-Static threat
Static hazard factors tend to be associated with long time risk, consisting of an area that
could simplest flood each one hundred years.
A 40-yr old industrial constructing is insured with a restrict on the building of $three
hundred,000 and has suffered a partial loss due to a hot water heater explosion. It will price
$17,000 for the extended cost of creation to comply with the constructing codes and $20,000
for all other protected damages. The building is covered underneath a standardized Building
and Personal Property insurance form, with the special cause of loss form connected. The
insured submits the evidence of loss for all the repairs, inclusive of the extended fees to
comply with the brand new building codes. Which of the subsequent describes how this
declare will be paid? - ANS-The insurer will pay $10,000 for the improved price of
construction, plus $20,000 for the value of all different covered damages
The insurer pays $10,000 (five% of the insured limit is $15,000, and the insurer pays the
lesser of those two) because this is the restrict of liability distinct inside the additional
insurance, for the "Increased Cost of Construction". The coverage will even pay $20,000 for
the damages because of the covered reason of loss.
A commercial enterprise auto policy has a $100,000 limit of insurance for liability coverage.
As a end result of an vehicle coincidence regarding a blanketed auto, two human beings are
injured. The first injured party sues the named insured and wins a $150,000 judgment. The
insurer can pay its restriction of insurance. If the alternative injured birthday celebration later
sues the insured, the insurer will: - ANS-Deny in addition responsibilities to the insured as a
result of the opposite injured birthday party
The responsibility of the insurer ends while it has exhausted its limits through the fee of
claims due to a single covered declare.
A church has had the woodwork inside the building refinished and new stain and varnish has
been carried out. The employees placed the rags and brushes that have been used to apply
the varnish in a small closet and closed the door, growing the possibility of spontaneous
combustion. Which of the following phrases great describes this situation? - ANS-Hazard
This situation is a risk, any condition that increases the possibility or severity of a loss.
A coverage extension included on the Building and Personal Property coverage form gives
insurance for commercial enterprise non-public assets quickly stored in a indifferent trailer
within one hundred toes of the insured building for: - ANS-A limit of $10,000 until higher
limits are bought
,The insurance extension presents a restrict of $10,000 except higher limits are purchased.
A fireplace in Josh's factory reasons him to shut the doorways for forty five days. While
maintenance take region, Josh spends $190,000 renting any other building and gadget, to
keep production going. Even though Josh's Commercial Property coverage would not cowl
his lost commercial enterprise earnings, he does have Extra Expense Coverage with a $two
hundred,000 limit and Limits of Loss Payment set at 40% / 80% / a hundred%. How a good
deal indemnification can Josh get over his insurer in this example? - ANS-$160,000
Josh can acquire 40% of the limit or $80.000 within the first month. (40% X 2
hundred,000=eighty,000) He can collect up to eighty% of the restrict inside the 2d month
(80% X two hundred,000=one hundred sixty,000) He has suffered a 190,000 loss in forty five
days so a hundred and sixty,000 is payable as that is the maximum he can gather within the
first 60 days.
A gas line explodes out of doors of Mindy's Mending Shop, ruining her new landscaping.
Which insurance extension of Mindy's Commercial Property policy would cowl the price of
changing the damaged bushes and shrubs? - ANS-Outdoor Property
The insurance extension "Outdoor Property" adds insurance for trees and shrubs that were
excluded within the "assets not blanketed" segment of the coverage.
A Homeowners coverage is a personal package coverage. All of the subsequent are
advantages of a personal bundle coverage, EXCEPT: - ANS-Package rules allow for lower
deductibles
Insureds choose their deductible quantities, package regulations do not permit for lower
deductibles. All of the opposite solution alternatives are advantages to package deal
regulations.
A electricity surge sparks a small electric fire in an workplace building. The electrical hearth
triggers the automated sprinkler machine and the water from the sprinklers, soaks the carpet
and shorts-out all of the computer systems, inflicting thousands of dollars in harm. The
workplace must near for two months throughout maintenance. The cost of renting a transient
workplace space while the physical harm to the workplace constructing is repaired is
considered to be: - ANS-An indirect loss
An oblique loss is created while an instantaneous loss has created a situation whilst
damaged property can't be used. The fee of renting temporary office space because the
damaged space is unusable, is an indirect loss, on occasion known as a consequential loss.
According to the Oklahoma insurance code a overseas insurer is prepared: - ANS-Under the
legal guidelines of a nation apart from Oklahoma
According to the Oklahoma insurance code a foreign insurer is prepared beneath the laws of
a kingdom apart from Oklahoma.
, Adjusters in Oklahoma who have interaction inside the research, adjustment, and
negotiation of claims as salaried employees of an insurer are referred to as: - ANS-Company
or staff adjusters
The Oklahoma coverage code specifies that adjusters who interact in the investigation,
adjustment, and negotiation of claims as salaried employees of an insurer are referred to as
agency or personnel adjusters.
Adverse choice takes place while: - ANS-Applicants are established by means of the insurer
with very little interest given to underwriting
Insurers must carefully underwrite all risks to keep away from being the sufferer of negative
choice. With unfavourable selection, the insurer is confronted with the possibility of loss
because of risks now not factored in on the time of sale.
All Homeowners bureaucracy offer the "Property Removed" additional insurance for as much
as how many days? - ANS-30 days
The restrict is 30 days on the standardized Homeowner paperwork.
All of the following are eligible for a Homeowners policy, EXCEPT: - ANS-An character who
purchases a duplex to be able to rent out both units
The owner should occupy one aspect of the duplex with a view to be eligible for a
Homeowners coverage.
All of the subsequent are protected within the definition of "car" under the Business Auto
coverage, EXCEPT: - ANS-Mobile equipment
"Mobile device" is specially EXCLUDED from the definition of "vehicle" under the Business
Auto shape.
All of the subsequent are protected in the definition of "fungus" below the "Limited Coverage
for Fungus, Wet Rot, Dry Rot, and Bacteria additional coverage of the Commercial Property
motive of loss forms, EXCEPT: - ANS-Algae
Algae are NOT included within the definition of "fungus" underneath the additional insurance
of the reason of loss bureaucracy.
All of the subsequent items are given a "special limit of legal responsibility" underneath
Coverage C of the Homeowners rules, EXCEPT: - ANS-Motorized land motors
Motorized land motors aren't given a special restriction of legal responsibility below
Coverage C of the Homeowners paperwork.
All of the subsequent objects have a special restrict of liability for Coverage C of the
Homeowners forms, EXCEPT: - ANS-Outdoor fixtures
A one hundred-year flood is an instance of which of the subsequent forms of chance? -
ANS-Static threat
Static hazard factors tend to be associated with long time risk, consisting of an area that
could simplest flood each one hundred years.
A 40-yr old industrial constructing is insured with a restrict on the building of $three
hundred,000 and has suffered a partial loss due to a hot water heater explosion. It will price
$17,000 for the extended cost of creation to comply with the constructing codes and $20,000
for all other protected damages. The building is covered underneath a standardized Building
and Personal Property insurance form, with the special cause of loss form connected. The
insured submits the evidence of loss for all the repairs, inclusive of the extended fees to
comply with the brand new building codes. Which of the subsequent describes how this
declare will be paid? - ANS-The insurer will pay $10,000 for the improved price of
construction, plus $20,000 for the value of all different covered damages
The insurer pays $10,000 (five% of the insured limit is $15,000, and the insurer pays the
lesser of those two) because this is the restrict of liability distinct inside the additional
insurance, for the "Increased Cost of Construction". The coverage will even pay $20,000 for
the damages because of the covered reason of loss.
A commercial enterprise auto policy has a $100,000 limit of insurance for liability coverage.
As a end result of an vehicle coincidence regarding a blanketed auto, two human beings are
injured. The first injured party sues the named insured and wins a $150,000 judgment. The
insurer can pay its restriction of insurance. If the alternative injured birthday celebration later
sues the insured, the insurer will: - ANS-Deny in addition responsibilities to the insured as a
result of the opposite injured birthday party
The responsibility of the insurer ends while it has exhausted its limits through the fee of
claims due to a single covered declare.
A church has had the woodwork inside the building refinished and new stain and varnish has
been carried out. The employees placed the rags and brushes that have been used to apply
the varnish in a small closet and closed the door, growing the possibility of spontaneous
combustion. Which of the following phrases great describes this situation? - ANS-Hazard
This situation is a risk, any condition that increases the possibility or severity of a loss.
A coverage extension included on the Building and Personal Property coverage form gives
insurance for commercial enterprise non-public assets quickly stored in a indifferent trailer
within one hundred toes of the insured building for: - ANS-A limit of $10,000 until higher
limits are bought
,The insurance extension presents a restrict of $10,000 except higher limits are purchased.
A fireplace in Josh's factory reasons him to shut the doorways for forty five days. While
maintenance take region, Josh spends $190,000 renting any other building and gadget, to
keep production going. Even though Josh's Commercial Property coverage would not cowl
his lost commercial enterprise earnings, he does have Extra Expense Coverage with a $two
hundred,000 limit and Limits of Loss Payment set at 40% / 80% / a hundred%. How a good
deal indemnification can Josh get over his insurer in this example? - ANS-$160,000
Josh can acquire 40% of the limit or $80.000 within the first month. (40% X 2
hundred,000=eighty,000) He can collect up to eighty% of the restrict inside the 2d month
(80% X two hundred,000=one hundred sixty,000) He has suffered a 190,000 loss in forty five
days so a hundred and sixty,000 is payable as that is the maximum he can gather within the
first 60 days.
A gas line explodes out of doors of Mindy's Mending Shop, ruining her new landscaping.
Which insurance extension of Mindy's Commercial Property policy would cowl the price of
changing the damaged bushes and shrubs? - ANS-Outdoor Property
The insurance extension "Outdoor Property" adds insurance for trees and shrubs that were
excluded within the "assets not blanketed" segment of the coverage.
A Homeowners coverage is a personal package coverage. All of the subsequent are
advantages of a personal bundle coverage, EXCEPT: - ANS-Package rules allow for lower
deductibles
Insureds choose their deductible quantities, package regulations do not permit for lower
deductibles. All of the opposite solution alternatives are advantages to package deal
regulations.
A electricity surge sparks a small electric fire in an workplace building. The electrical hearth
triggers the automated sprinkler machine and the water from the sprinklers, soaks the carpet
and shorts-out all of the computer systems, inflicting thousands of dollars in harm. The
workplace must near for two months throughout maintenance. The cost of renting a transient
workplace space while the physical harm to the workplace constructing is repaired is
considered to be: - ANS-An indirect loss
An oblique loss is created while an instantaneous loss has created a situation whilst
damaged property can't be used. The fee of renting temporary office space because the
damaged space is unusable, is an indirect loss, on occasion known as a consequential loss.
According to the Oklahoma insurance code a overseas insurer is prepared: - ANS-Under the
legal guidelines of a nation apart from Oklahoma
According to the Oklahoma insurance code a foreign insurer is prepared beneath the laws of
a kingdom apart from Oklahoma.
, Adjusters in Oklahoma who have interaction inside the research, adjustment, and
negotiation of claims as salaried employees of an insurer are referred to as: - ANS-Company
or staff adjusters
The Oklahoma coverage code specifies that adjusters who interact in the investigation,
adjustment, and negotiation of claims as salaried employees of an insurer are referred to as
agency or personnel adjusters.
Adverse choice takes place while: - ANS-Applicants are established by means of the insurer
with very little interest given to underwriting
Insurers must carefully underwrite all risks to keep away from being the sufferer of negative
choice. With unfavourable selection, the insurer is confronted with the possibility of loss
because of risks now not factored in on the time of sale.
All Homeowners bureaucracy offer the "Property Removed" additional insurance for as much
as how many days? - ANS-30 days
The restrict is 30 days on the standardized Homeowner paperwork.
All of the following are eligible for a Homeowners policy, EXCEPT: - ANS-An character who
purchases a duplex to be able to rent out both units
The owner should occupy one aspect of the duplex with a view to be eligible for a
Homeowners coverage.
All of the subsequent are protected within the definition of "car" under the Business Auto
coverage, EXCEPT: - ANS-Mobile equipment
"Mobile device" is specially EXCLUDED from the definition of "vehicle" under the Business
Auto shape.
All of the subsequent are protected in the definition of "fungus" below the "Limited Coverage
for Fungus, Wet Rot, Dry Rot, and Bacteria additional coverage of the Commercial Property
motive of loss forms, EXCEPT: - ANS-Algae
Algae are NOT included within the definition of "fungus" underneath the additional insurance
of the reason of loss bureaucracy.
All of the subsequent items are given a "special limit of legal responsibility" underneath
Coverage C of the Homeowners rules, EXCEPT: - ANS-Motorized land motors
Motorized land motors aren't given a special restriction of legal responsibility below
Coverage C of the Homeowners paperwork.
All of the subsequent objects have a special restrict of liability for Coverage C of the
Homeowners forms, EXCEPT: - ANS-Outdoor fixtures
