South Dakota Property and Casualty practice exam questions and answers graded a+

The _________ endorsement covers the loss of money, securities, or property that results from a threat made to the insured, so long as the threat is reported to law enforcement. - correct answers Extortion Rates are referred to as which of the following when the insurance company files for approval and then implements the rates? - correct answers File and Use All of the following are considered to be insured under a Homeowners Policy, except: - correct answers A 25-year-old friend who is living with an insured Which coverage is written with a per occurrence limit? - correct answers Bodily injury and property damage Which of the following would be found in Section I of a CGL? - correct answers Coverage for bodily injury and property damage A tenant should buy which of the following Homeowner Policy Forms? - correct answers HO-4 Which statement is true regarding the Personal Liability Supplement to the Dwelling policy? - correct answers The supplement provides coverage for claim expenses Sudden and accidental damage from artificially generated electrical current best describes a(n): - correct answers Power surge The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A? - correct answers 50% All the following injuries are covered under a Workers' Compensation policy, except: - correct answers An employee whose injury results from intoxication Of the Dwelling Policy forms, which one does not cover damage by burglars? - correct answers Basic Form (DP-1) Which is true regarding Dwelling policies? - correct answers Coverage C applies while insured property is located at the described location M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party? - correct answers C's policy Whenever any policy is written or renewed to insure any _________ property in South Dakota against loss by fire, tornado, or lightning and the property insured is completely destroyed, without criminal fault on the part of the insured or the insured's assignees, the insurance amount written in the policy must be taken conclusively to be the true value of the property insured and the true amount of loss and measure of damages. - correct answers Real Insurance is an example of which type of risk management technique? - correct answers Transfer of risk Which of the following best defines short-rate cancellation? - correct answers The insured will receive less than the full amount of the unearned premium The Personal Articles Floater is written: - correct answers Only on moveable property Risk is defined as: - correct answers Uncertainty or chance of loss Which statement is false regarding the completed operations exposure? - correct answers Coverage includes replacement of the work that caused the loss When would a person purchase a value reporting form? - correct answers When an insured has business personal property values that fluctuate, and needs protection for the values actually at risk Which of the following is covered under a Personal Auto Policy? - correct answers A vehicle driven with permission by an unlicensed driver Which of the following losses would be covered under all Dwelling forms? - correct answers Fire damage to building materials and supplies that are located on the insured premises The Running Down Clause would cover which of the following claims? - correct answers Collision damage to another vessel when the insured is liable Which of the following is true regarding an unendorsed HO-4? - correct answers It includes the Broad Form named perils on an actual cash value basis The Commercial Property Basic Cause of Loss Form will cover losses caused by which of the following? - correct answers Sprinkler leakage What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm? - correct answers 0% Which of the following is true regarding the Earthquake Cause of Loss Form? - correct answers It can be used only with another Causes of Loss Form (It can't be used alone!) All of the following are considered uninsured motor vehicles, except: - correct answers A vehicle that is being used as a residence The Workers' Compensation Policy Conditions Section includes which of the following? - correct answers The cancellation policy Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored? - correct answers A helium tank used for the insured's business Under the Businessowners Policy, if there is other insurance covering the same loss how will the policy respond? - correct answers The insurer will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance Which of the following is covered under Aircraft Liability Insurance? - correct answers Liability claims arising from the ownership, maintenance or use of an aircraft Which of the following describes both the premium paid by the insured and the promise by the insurer to pay a covered loss and defend the insured in a lawsuit? - correct answers Consideration Structures on the premises separated by clear space from the dwelling are covered under which part of the Homeowners Policy? - correct answers Coverage B Structures attached to the dwelling are included under - correct answers Coverage A Which term describes the situation when two policies covering the same property contain different policy periods? - correct answers Nonconcurrency The CGL's general aggregate limit does not cover which of the following? - correct answers Product recall (Coverage is excluded when a product is withdrawn from the market because of a defect. This is sometimes called the Sistership Exclusion.) Under a Businessowners policy, if an insured acquires a building on April 1st, it is automatically covered until which date? - correct answers May 1 (Newly acquired or constructed property is a policy coverage extension covering each new building up to $250,000 for up to 30 days.) Which of these statements is not true about Uninsured Motorist coverage? - correct answers Coverage is automatically provided for the damage to the insured vehicle Property stolen from inside the premises by a person forcibly entering or leaving the premises is considered which type of crime? - correct answers Burglary The provision that the insured's interest in a property insurance policy may not be transferred to another person without the consent of the insurance company, is called: - correct answers Assignment Under the South Dakota Workers' Compensation Law, compensation is allowed for a injury or death due to which of the following? - correct answers Occupational illness Which coverage is not an Additional Coverage under the Businessowners Coverage Form? - correct answers Equipment breakdown (this is an OPTIONAL COVERAGE, not additional) Who of the following is not considered an insured under a BOP? - correct answers Anyone driving the named insured's mobile equipment on public roads, without the named insured's permission Which of the following is not a type of personal and advertising Injury under the CGL? - correct answers Breach of contract Which of the following is automatically covered under the Businessowners Policy? - correct answers Signs attached to the building (limit $1000) To which injury would CGL Medical Payments apply? - correct answers A volunteer worker handing out company coupons during a sale How long after a loss before the Period of Restoration begins for Business Income coverage? - correct answers 72 hours When damages are reduced in proportion to the degree of negligence, this is an example of: - correct answers Comparative Negligence Endorsements that coordinate CPP coverages to avoid duplication are called: - correct answers Interline Which of the following claims would not be covered under Workers' Compensation Insurance? - correct answers An employee who contracts a cold in the winter (Go to q 51 to start again) CGL sections: - correct answers Section I: Body injury / property damage II: Who is insured IV: Conditions V: Definitions Consideration - correct answers used to describe the rights, money, promises, or property exchanged between the parties as part of a contract transaction. Coverage for structures attached to a building: - correct answers coverage A. not attached; B CGL stands for - correct answers Commercial General Liability Under the BOP, what is the insurer's obligation following a loss when other insurance is written with exactly the same basis? (PS BOP means businessowner policy) - correct answers To pay only after the other insurance coverage is exhausted The common policy declarations of the CPP contain all of the following, except: - correct answers Transfer of rights and duties (this is found in the conditions section) Which of the following is covered under Part D of the Personal Auto Policy? - correct answers Water or flood damage to a convertible when the top is left down Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form includes all of the following, except: - correct answers Glass breakage Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto? - correct answers The maximum that will be paid is equal to the limit of the policy with the higher limit of liability Which of the following is not true about an insurance policy? - correct answers The Insuring Agreement includes the name of the insured (this is found in Declarations)