Exam fx practice test Questions
(Answers). 100% Accurate. Rated A
The Louisiana insurance Guaranty Association Board of Directors are placed in office by - ✔✔-election
and appointment
States with monopolistic state
...
Exam fx practice test Questions
(Answers). 100% Accurate. Rated A
The Louisiana insurance Guaranty Association Board of Directors are placed in office by - ✔✔-election
and appointment
States with monopolistic state workers compensation funds - ✔✔-Do not allow private insurers to be
licensed to write workers compensation coverage
This state provided for a temporary licenses for all of the following EXCEPT - ✔✔-A producer's
retirement
Which of the following producers will be required to complete continuing education hours to renew his
license? - ✔✔-A producer licensed 4 years ago who holds only one line of authority.
A producer has been notified by the commissioner to stop using an unapproved trade name. How many
days does the producer have to change the trade name before facing a fine? - ✔✔-10 days
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? -
✔✔-
The Pro rata liability clause is designed to protect the principle of - ✔✔-Indemnity
When a resident producer changes his residence address, the Insurance Department must be notified
within - ✔✔-30 days
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty
of any furniture or personal belongings. From an Insurance standpoint, the building is considered. - ✔✔-
Vacant
An insurer publishes intimidating brochures that portray the insurer's competitions as financially and
professionally unstable. Which of of the following best describes this act. - ✔✔-Legal, under any
circumstances
Which bonds are required by courts whenever someone seeks a court order stating another person
must or must not dot something? - ✔✔-Injunction bond
In comparison to consumer reports, which of the following describes a unique characteristic of
investigative consumer reports? - ✔✔-The customer's associates, friends, and neighbors provide the
report's data.
An insured relocated to another state for work. However, she still owns and insurers a house in this
state, but has had one living in it for 3 months. She is also storing some of furniture and clothes in the
house. From an insurance standpoint, the insured's house is considered? - ✔✔-Unoccupied
If a farm building or structure is vacant or unoccupied, which is true? - ✔✔-If for 120 consecutive days,
the limits applicable to the building and its contents are reduced by 50%
Which loss listed below would be fully covered by a homeowners policy? - ✔✔-$2,000 silver tea set
stolen
A specific coverage part is listed on the commercial package policy declerations page, but there is no
premium shown. What does that mean, - ✔✔-There is no coverage.
With respect to auto insurance, the term owned autos includes all of the following EXCEPT: - ✔✔-A
pickup or van titled to and used in the named insured's business
A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli,
the liability policy paid for medical expenses. The customer, however, is now suing the business owner
because she claims there was no caution sign warning her that the floor was wet. What is the insurer
obligated to do. - ✔✔-Pay to defend the policy owner in the lawsuit because liability coverage contains a
duty-to-defend provision
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called
the - ✔✔-Conditions
What type of information would be found in a policy's insuring agreement? - ✔✔-Renewal dates
The commercial general liability coverage form excludes bodily injury or property damage that the
insured has assumed under any contract or agreement. However, the exclusion does not apply to
certain types of contracts, as long as the injury or damage occurs - ✔✔-After the execution of the
contract
A restaurant is out of business for 3 days after an insured's automobile hits and electrical pole. The pole
fails and hits the building, knocking out all electrical power supply. Which of the following is NOT
covered under the insured driver's auto policy? - ✔✔-Lost revenues from the restaurant
What method of premium computation relates an employer's losses, payroll, and premiums to the
rating bureau's classifications of operations . - ✔✔-Experience modification factor
Which of the following terms refers to other insurance that is written on the same risk, but not on the
same coverage basis? - ✔✔-Nonconcurrency
When is an employee entitled to rehabilitation services under Workers Compensation? - ✔✔-When the
injured worker is unable to earn wages equal to what they earned before the injury.
Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to - ✔✔-Property and
liability losses
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or
damage to property that is neither intended nor expected is the definition of which of the following
terms? - ✔✔-Occurrence
If an insured bakery is sued because its marketing states that the products of another bakery may not be
safe, which coverage of a commercial general liability policy will defend the suit? - ✔✔-Personal and
advertising liability
An insurance company has published a brochure that inaccurately portrays the advantage of a particular
insurance policy. What is this an example of? - ✔✔-False advertising
Which of the following risks is eligible for coverage under a bussiness owners policy? - ✔✔-
Condominiums
Which method of loss valuation is contrary to the basic concept of indemnity? - ✔✔-Replacement cost
Which of the following is an additional coverage that is covered by the broad causes of loss form? - ✔✔-
Collapse
A parking garage owner completed major renovations to a parking garage just prior to selling it to
another company. Three months later, overhead concrete fell on to cars in the second floor level. Under
the garage coverage policy conditions, which of the following is true? - ✔✔-The da
[Show More]
