| Question | Answer |
| Of the following policies, which has the broader coverage?
a. MPCI
b. Farm and Ranch equipment rider
c. Crop-Hail
d. CAT coverage | MPCI |
| The "Consent to Settle" clause in the Professional Liability Policy is best described as: | a clause that requires the insurance company to get approval from the insured prior to settling a claim |
| Pointing out a piece of evidence that works in a claimants favor, and then conceding that point to a claimant is a negotiating technique known as: | "pleasant surprise."
The pleasant surprise technique helps the negotiator appear less as an adversary, and also helps the claimant feel they are making headway in negotiations. |
| Co.X ship $75K in cargo to eng. Co. Y is transporting $25K in of cargo on the same ship. Trouble.. & the cpt must save the ship by droppng 1/2 of Co.X's cargo because it is stored near the edge of the ship. Under the Gen Avg clause, what % must Y contrib? | 25% |
| From a legal standpoint, when a policyholder files a claim against their insurance policy, they are essentially submitting a/an ____________ . | Offer |
| Guido of Guido's Pizza has a BAP. His employee, Jason, delivers pizzas. What coverage should Guido add to the BAP to insure Jason has basic coverage when driving a company vehicle for business and non-business purposes? | Drive Other Car coverage |
| Each ins. coverage in a commercial property ins. policy will contain a cause of loss form. Which of the following is NOT an example of a cause of loss form?
a. basic col form
b. general col form
c. special cause of loss form
d. broad cause of loss for | general cause of loss form |
| True or False: In a contract of adhesion, The consumer has little to no leeway to negotiate the terms of the contract. | True |
| Which of the following elements is "negotiable" during direct negotiations between an adjuster and a claimant?
a. Punitive damages.
b. Pain and suffering.
c. Policy limits.
d. Policy coverage. | Pain and suffering |
| Bob had purchased an insurance policy on his barn with a replacement cost endorsement, and the barn was fully insured to 80% of its value. When will Bob receive full indemnification for his losses on the barn? | when he replaces the barn and files a supplementary claim. The insurer pays the difference between the actual cash value of the loss and the replacement cost only after the insured party makes the repairs and submits a claim for the difference. |
| The only two states that have elective participation in workers' compensation insurance are: | New Jersey and Texas |
| What is the primary difference between Pollution Liability Coverage-Broad Form and the Pollution Liability Limited Coverage Form? | The Broad Form pays for clean-up costs, which the Limited Form only pays for bodily injury and property damage. |
| True or false: The reservation of rights permits the insurer to offer a settlement to the plaintiff. | False |
| Which type of claims are typically the most difficult to negotiate?
a. Property claims
b. Liability claims
c. Physical damage claims
d. Fraudulent claims | Liability claims:
Property claim disputes are much easier to negotiate as repair and replacement costs are definite and verifiable. Liability claims can involve issues regarding partial responsibility and "legal liability." |
| How many months of reimbursement is Mary Jane eligible for if her house burns down and her renter moves out? | 2 Months |
| If Franklin Fireplace had business income with extra expense coverage, how much would an insurance company have to indemnity Franklin Fireplace? | $540,000 |
| True or False: Pain and suffering is "negotiable" during direct negotiations between an adjuster and a claimant. | True |
| True or False: Under Workers' Compensation,there is no waiting period for Disability Benefits. | False |
| True or False: Stand alone excess liability coverage provides limitations and exclusions to the coverage of the base policy. | True |
