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What information is found on a Declarations Page
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Which PAP section would include a provision allowing the insured to suspend coverage on a vehicle for an extended amount of time?
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SC Adjuster's Exam
Prep material for the SC Insurance Adjuster's Exam Series 19-11
| Term | Definition |
|---|---|
| What information is found on a Declarations Page | Also called the Dec Page. First page of a policy, which provides a summary of the contract; includes names of insured, addresses, coverage limits, policy period, etc. Location of property, Any applicable endorsements, Coverage types |
| Which PAP section would include a provision allowing the insured to suspend coverage on a vehicle for an extended amount of time? | Endorsements |
| Cheapest and most common ISO forms- HO policy | HO- 3 |
| Aspects of the PAP endorsement for Extended Non-Owned | Extends coverage to non-owned vehicles, covers non-owned vehicles carrying cargo for a fee, and liability only applies to named insured |
| What is symbol #2 in a Business Auto Policy? | Any owned vehicle |
| A garage keepers policy provides direct excess coverage or: | Direct primary coverage |
| Which coverage under a garagekeepers policy splits the loss with the car owner’s insurance coverage when the car is damaged while under the care of the garage? | Direct Primary coverage |
| In a Commercial Auto Policy, which coverage symbol would indicate that a car is subject to mandatory no-fault insurance? | 5 |
| Which endorsement to the Commercial Crime policy would protect a bank against its liability for burglary, robbery, destruction, or damage to customers’ belongings kept in safe deposit at the bank? | Safe Depository |
| Requirements that a “Specialty Contractor” must meet in order to qualify for a Businessowners Policy? | Annual payroll of $300,000 or less, Annual sales of $3,000,000 or less, Work on buildings of no more than three stories |
| Workers compensation insurance pays up to ___________ for funeral costs. | $2,500 |
| The purpose of fidelity bonds is to guarantee that: | the principal will not perform certain acts. |
| All of the following would be covered by the NFIP General Property Form: | a motel lobby’s furnishings, a medical office, a furniture store’s inventory |
| An insurance company may consider each of the following a risk, EXCEPT: a flood zone, a school bus, a Ruby necklace, or a race car? | a flood zone |
| Gina was injured when she fell on a wet floor in ABC Department Store. She filed a lawsuit and was awarded $9,000 in _________ to cover the medical bills that resulted from her fall. General damages, punitive damages, tort damages, or special damages? | special damages |
| When is a non-waiver agreement often used? | When an independent adjuster is investigating a claim in a catastrophe situation |
| An adjuster’s field report would most likely not: include a settlement amount, establish a claim reserve, list any liability issues, or document initial contact with the claimant? | include the settlement amount |
| In property claims, the plaintiff is usually the_____. | Insured |
| A typical homeowners policy with a $250,000 limit for Coverage A will automatically have how much coverage for Other Structures (assuming there are no endorsements)? | $25,000 |
| Which endorsement to the BAP would extend policy coverage to Jenny’s employee Trisha, who drives her own car around the city to sell the company’s hair products? | Employee as Additional Insured |
| The insuring agreement for Part A-Liability in a personal auto policy states: | the insurer has the right to settle liability cases out of court. |
| PIP is usually primary or secondary coverage? | PIP is usually primary coverage |
| Does a BOP provide coverage for businesses on an open-peril basis? | Yes |
| Teri’s finished basement flooded during a recent storm, which caused quite a bit of damage to the contents. Which of Teri’s items below would be covered under her Dwelling Form flood policy’s Coverage B? | Washer and dryer set |
| Duties of the Director of Insurance in South Carolina? | Provide consumer education on HO policies and available discounts as well as premium comparisons, inform the public about catastrophe savings accounts, report annually to state officials on the the status of the SC Hurricane Damage Program. |
| What is strict liability? | Holds a party 100% liable for damages when the activity or instrument they are performing is inherently dangerous. |
| Who must sign a Non-waiver Agreement? | The insurance company and the claimant |
| Which of the following homeowners policies provide coverage on an open-peril basis for personal property without endorsement? | HO-5 |
| How many days does a house need to be unoccupied before homeowners coverage is suspended? | 60 consecutive days. |
| UM/UIM coverage includes: | hit-and-run accidents, pedestrians, any auto with liability insurance. |
| PIP covers... | you and people in your car. |
| Used as an alternative to the Trucker’s Policy, this policy is designed for companies that offer transportation services to the public on a regular basis, rather than for hire. | Motor Carrier policy |
| In a Business Auto policy, which symbol applies to private passenger autos owned by the insured, excluding trucks, buses, and specialty vehicles? | Symbol #3 |
| Bob owns a garage. Which coverage symbol in his Garage-keepers policy pertains to the coverage that Bob is required to have to protect the vehicles left in his care? | Symbol #30 |
| When an insurance professional intentionally makes false statements in a financial report, he could be fined up to $50,000 per violation, OR: | the amount of compensation he received for the fraudulent activity, if that amount is more than $50,000. |
| Describe HO-2 | also known as the Broad or “cheap” form, but provides more coverage than HO-8. Named peril policy, insures against all 17 broad form perils, covers house and personal property |
| Describe HO-3 | the Special Form, is the most common; it is the middle-of-the-road form. Covers all perils except those specifically excluded. |
| Describe HO-4 | (4-rent) Contents Broad Form is the tenants’ form and is a special, contents-only policy for renters. Does not insure house or other structures. |
| Describe HO-5 | provides the best coverage and is considered the high-end form. Covers all perils except those specifically excluded. |
| Describe HO-6 | is the Condominium Form for condominium owners. |
| Describe HO-8 | the Modified Coverage Form, gives more limited coverage than other forms. Covers fewer perils. Covers property at ACV. Advantage: cheaper. |
| Coverage A covers what? | The dwelling, structures attached to dwelling, materials located in or near premises used to construct or repair, items that service the dwelling. |
| Coverage B of a HO covers what? | Detached structures: garages, gazebos, fences, mailboxes, lamp posts, sheds. Limit is 10% of coverage A, acts as additional insurance. (pays on tops of A limit) |
| Coverage C covers what? | Personal property. Covered anywhere in the world. Limit is 10% of coverage C if not on premises. |
| Coverage limit of silver/gold ware, firearms, property used in business? | $2,500 |
| Coverage limit of passports/tickets/stamps, jewelry/furs, boats/trailers/furnishings, portable electronics? | $1,500 |
| Coverage limit of coins and money? | $200 |
| Coverage C exclusions? | Pets, automobiles, aircraft, renter's property, credit card, heating/ac systems. |
| Coverage D covers what? | Loss of use: living expenses, fair rental value, civil authority loss of sue. |
| Debris removal limit? | 5% of applicable coverage |
| Grave marker limit? | $5,000 |
| Coverage E of an HO covers what? | Personal liability: pays for bodily injury and property damage to third party if insured found negligent. Never pays the insured. |
| Coverage F of an HO covers what? | Medical payments: For medical expenses incurred by a third party due to an accident on the insured's premises. $1,000 minimum. |
| What is a DP-1? | Basic form, named peril coverage. Covers only lightning, fire, and internal explosion. |
| What is DP-2? | Broad form, same perils as Basic form+extended/broad form perils |
| What is DP-3? | Open-peril coverage- If a peril is not excluded, it's covered. "All-Risk." Does not extend to persona property. |
| Which coverages cover indirect (economic) losses? | Coverage D and E |
| What is coverage E of a DP? | Additional living expenses in a DP |
| What is BOP 1? | Property: A= Buildings and structures, B= Business Personal Property, C= Personal property of others |
| What is BOP Section 2? | Liability |
| What is BOP Section 3? | Common policy conditions |
| What is part A of a PAP? | Liability |
| What is part B of a PAP? | Medical payments |
| What is part C of a PAP? | Uninsured motorist |
| What is part D of a PAP? | Damage |
| What is part E of a PAP? | Duties after loss |
| What is part F of a PAP? | General provisions |
| What is symbol 1 of a BAP? | Any auto, usually only liability. |
| What is symbol 2 of a BAP? | Any owned vehicle. |
| What is symbol 3 of a BAP? | Owned private passenger vehicle, not trucks, buses, etc. |
| What is symbol 4 of a BAP? | Owned specialty vehicles- trucks, buses, etc. |
| What is symbol 5 of a BAP? | Owned autos subject to no-fault insurance. |
| What is symbol 6 of a BAP? | Owned autos subject to uninsured motorist law. |
| What is symbol 7 of a BAP? | Specifically described autos. |
| What symbol is hired autos in a business auto policy? | Symbol 8 |
| What is symbol 9 of a BAP? | Non-owned vehicles. |
| What is symbol 19 of a BAP? | Mobile equipment. |
| What is Adhesion? | Characteristic of an insurance contract. Means that one party (the insurer) sets the terms, and the other (the policyholder) can "take it or leave it." |
| What is an Advanced Payment Settlement? | A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been fully settled. Often used when a claimant suffers bodily injury and is unable to work. |
| What is Agent Authority? | The Agent’s authority to act on behalf of someone else, usually an insurer. This authority is derived from the agent’s contract with the insurer. |
| What is Aleatory? | A characteristic of an insurance contract. Means "depending on an unknown future event." |
| What is a Bond? | A contract wherein one party guarantees the performance of a third party. |
| What are Damages - general ? | Intangible losses such as pain and suffering, or mental anguish. |
| What are Damages - special ? | Tangible, financial losses that can be documented. |
| What is a Morale Hazard? | Unconscious tendency of insured people to engage in riskier behavior. |
| What is a Moral Hazard? | Hazard caused by insured persons deliberately engaging in risky behavior because they know that insurance will indemnify them for the losses. |
| What is Mediation? | A method of negotiation that utilizes a neutral third party adviser to reach a mutually-agreeable solution. Mediation differs from Appraisal in that the decision is not binding to the opposing parties. |
| What is a Reciprocal Insurer? | A Reciprocal Insurer is an unincorporated organization of subscribers that operates through an attorney-in-fact to provide insurance benefits for its members |
| What is Pure Risk? | Risk that does not entail the possibility of gain; the only possible outcomes are a loss or no loss. |
| What is a Risk Retention Group? | Groups where the members insure each other, using their own capital to write insurance policies. |
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ziggyindigo