Insurance Questions

The insured business purchased $25,000 Extortion coverage. Which of the following losses will the insurer pay?Choose one answer. a. An employee is being held captive b. All of these answers are c. The president's son is being held captive d. A customer is being held captive

All of the following are covered by Mail Coverage (Inland Marine Form) except:Choose one answer. a. Parcel Post b. First Class Mail c. Express Mail d. Registered Mail

At the time of a loss, it is found that the covered building had been vacant for the period of 75 consecutive days immediately preceding the loss. Which of the following perils would not be covered?Choose one answer. a. Vandalism b. Fire c. Windstorm d. All of these answers are correct

Joe, who owns an automobile, wants to borrow his neighbor's van to go on vacation. Both Joe and his neighbor have Personal Auto policies providing Bodily Injury, Property Damage, Personal Injury Protection, Uninsured Motorist, and Physical Damage coverage. The neighbor fears Joe may have a claim, which involves Bodily Injury and/or Property damage. Which of the following can Joe purchase to satisfy his neighbor, if any?Choose one answer. a. Increase Uninsured Motorist coverage b. Extended Nonowned coverage c. No additional coverage is necessary to protect the neighbor d. Extended Personal Injury Protection

All of the following serve to enforce the Principle of Indemnity except:Choose one answer. a. Subrogation b. The Insurable interest rule c. The Liberalization Clause d. Actual Cash Value as a measure of a loss

A product purchased in the U.S. subsequently injured a claimant in Europe. Which of the following best explains the merchant's coverage under his Product's Liability coverage?Choose one answer. a. Not covered as product was out of the physical possession of the insured b. No coverage as loss was outside the U.S. c. Covered only if the policy is endorsed to provide European coverage d. Covered if any suits are brought in the U.S. or one of the covered territories

Actual Cash Value is best defined as:Choose one answer. a. Replacement cost less physical depreciation b. Original cost less physical depreciation c. Replacement cost less tax depreciation d. Original cost less tax depreciation

An appliance store sells a refrigerator to Mrs. Smith. The refrigerator is installed in Mrs. Smith's kitchen and after the installation had been completed, the refrigerator blows up catching fire and damaging the kitchen and injuring Mrs. Smith. The appliance store's Commercial General Liability policy covers?Choose one answer. a. All losses are covered b. Bodily Injury to Mrs. Smith only c. Bodily Injury to Mrs. Smith and damage to the kitchen but not the refrigerator d. Bodily Injury to Mrs. Smith and damage to the, refrigerator, but not the kitchen

A fire occurred in an apartment building resulting in $20,000 fire and $25,000 smoke damage to the building, and smoke damage to property of the tenants in a total amount of $25,000. On the way to the fire, one of the fire trucks collided with a parked automobile and damaged it to the extent of $5,000. The apartment building's owner has a Special Form policy in sufficient amount, and the tenants all have HO4 policies in sufficient amounts to cover losses. What amount of insurance will be paid by the apartment building owner's and tenant's policy (disregard any deductibles)?Choose one answer. a. $45,000 building and $25,000 to the tenant's property b. $25,000 smoke damage to property of the tenants c. $45,000 building for fire and smoke damage to the building d. $45,000 building, $25,000 to the tenant's property, and $5,000 collision damage by fire truck

A Builder's Risk coverage form is written in the amount of $100,000. The completed value of the structure is $150,000. The building is completed on June 1. On September 15, while helping the new occupant with his grand opening sale, a clerk sneaks a smoke in the restroom. A fire ensues causing a $10,000 fire loss. How much will the insurer pay?Choose one answer. a. $7,500 b. $6,666 c. Nothing d. $10,000

A Business Auto Policy (BAP) covers all of the following except:Choose one answer. a. A private passenger automobile owned by corporation b. A semi-trailer c. A truck crane d. A pickup truck

A Hospital Indemnity Policy covers which of the following expenses?Choose one answer. a. A flat amount per day for hospital room and board b. Nursing care in the insured's home c. Medical supplies d. Surgical fees incurred in the hospital