Which of the following is true about the uninsured  motorist coverage

1. It cancels and replaces underinsured motorist coverage
2. It is not mandatory coverage for an auto policies issued in the state
3. Additional UM coverage can exceed the liability limit on the same policy
4. One of the side benefits to this coverage is that it slightly expands personal injury protection

A producer must report a legal name change to the commissioner

1. By license renewal date
2. Within 15 days of occurrence
3. Within 30 days of occurrence
4. Prior to submission of new business

When a covered property loss makes an insured residence premises uninhabitable, which part of the home owners policy will pay for expenses the insured needs to maintain their standard of living?

1. Coverage A
2. Coverage B
3. Coverage C
4. Coverage D ‘

The unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance is called

1. Deformation
2. Fraud
3. Intimidation
4. Twisting

All of the following are name perils Except

1. Lightning
2. Windstorm
3. Flood
4. Fire

Your client wants all three of their buildings insured on one policy with one policy limit. What type of policy would you write?

1. Aggregate
2. Blanket
3. Scheduled
4. Specific

When an insured requests one value to cover property located at three locations, which form is recommended

1. Blanket
2. Reporting
3. Scheduled
4. Specific ‘

When an insured requests one value to cover the property located at three locations, which form is recommended?

1. Blanket
2. Reporting
3. Scheduled
4. Specific

Which form of insurer has shareholders?

1. Reciprocal company
2. Mutal company
3. Stock company
4. Fraternal society

Which of the following is NOT an insured under the businessowners policy (BOP)

1. A spouse
2. A current or past business entity not shown in the declarations
3. Individual members of a limited liability company
4. Any person or any organization while acting as your real estate manager

What are businessowners policies best suited for?

1. Retail business operating out of one location who’s insurance needs can easily be identified
2. Small business that owns many properties and has many real-estate investments to cover
3. Small business that is nationwide and has many types of risks that need to be covered
4. Fast food restaurant with a seating capacity of 100

All of the following incidental business would be eligible under a dwelling policy EXCEPT a

1. Beauty parlor
2. Photography studio
3. Professional office
4. Hardware store

A contract that insures a person is called a

1. Business contract
2. Personal contract
3. Liability contract
4. Individual contract

What type of authority is given by an insurer to a producer but NOT formally communicated

1. Implied
2. Express
3. Applied
4. Apparent

The Primary purpose of the property and casualty guaranty association is to

1. Provide an appeal process for denied claims
2. Help reorganize insurers having financial difficulties
3. Guarantee the payment of covered claims that exceed policy limits ‘
4. Make covered claim payments to policyholders of insolvent insurers

Which of the following represents an example of a direct loss to property

1. A broken stairway causes a guest to fall
2. Frozen pipes due to power failure
3. Shingles blow off in a windstorm
4. A baseball breaks a window

Workers compensation rates are based on classification by

1. Location
2. Age of employees
3. Number of employees
4. Occupation

Under a commercial crime policy what form provides for payment of losses identified during the policy period nut NOT necessarily sustained during the particular period ‘

1. Loss-sustained form
2. Discovery form
3. Notice form
4. Loss form ‘

The owner and contractors protective policy provides the insured with liability protection in situations where the law holds the owner or general contractor liable for the negligence of

1. Sub-contractor
2. An employee
3. A principal
4. A customer

Reinsurance allows an insurer to

1. Provide greater risk transference to the policyholders
2. Provide greater risk avoidance to another insurer
3. Transfer risk to policyholders
4. Transfer risk to another insurer

A typical insurance policy includes all of the following in the definition of territory EXCEPT

1. Puerto Rico
2. Canda
3. Mexico
4. Guam

Under the liability form which of the following scenarios would NOT be covered

1. Malicious prosecution
2. Medical payments after the limit of liability have been used up
3. Use of another’s advertising idea by the insureds advertising
4. Written publication of material that slanders or libels a person or organization

What part of the commercial package policy has information about who is insured and for what lines

1. Common policy declaration
2. Common policy conditions
3. Limits of insurance
4. Definitions

An insurer owned by its policyholders and pays dividends is considered

1. Stock company
2. Mutal company
3. Reciprocal company
4. Closely held corporation

What is the property protection insurance amount

1. $10,000
2. $100,000
3. $1,000,000
4. $10,000,000

What insurance is formed for the sole purpose of providing liability insurance for policyholders from the same industry

1. Self-insurers
2. Risk retention groups
3. Government insurers
4. Third-party administrators

What is an experience modification factor

1. The way the rates are classified for different groups in workers compensation coverage
2. A reduction in workers compensation premium got hiring experienced employees
3. A reduction or surcharge of premium based on an insureds loss history
4. The amount of premiums and losses the incurred by the insured

An insured losses control of the vehicle and hits a tree. The resulting collision is

1. An exposure
2. A hazard
3. A peril
4. A risk

What is the limit for business income on a business owners policy

1. Fifty percent of the building limit
2. Actual sustained loss up to 12 months
3. Actual loss up to 6 months
4. There is no limit

An insured losses control of the vehicle and hits a tree. The resulting collision is

1. An exposure
2. A hazard
3. A peril
4. A risk

What is an accurate statement regarding the spoilage coverage endorsement that can be added to a commercial property policy

1. Damage to perishable stock due to power outages is covered
2. Coverage is subject to coinsurance
3. Stock damage by employees negligence is covered
4. Damage caused by theft

According to the principle of indemnity, what must an insurer do when a property loss occurs?

1. Pay the replacement cost to restore the property ‘
2. Pay off a loan and hold the mortgage of the property owner
3. Not considered the age of the property at the time of the loss
4. Restore the insured to the position they were in prior to the loss

The special dwelling for (DP-3) is known as which type of coverage?

1. Open perils
2. Named perils
3. Specific perils
4. Comprehensive perils

Liquor liability insurance can be purchased on what basis

1. Only a claims-made basis
2. Only on a occurrence basis
3. On either a claims-made basis or occurrence basis
4. On a blanket basis

The certificate of insurance provides

1. The premium amount
2. A list of coverages
3. Proof the policy has been written
4. Temporary insurance until the policy is bound

Transportation expenses on the personal automobile policy are provided with no additional premium for which of the following amounts

1. $15 a day, to a maximum of $600
2. $20 a day, to a maximum if $600
3. $30 a day, to a maximum of $600
4. $30 a day to a maximum of $900

Under a homeowners policy, coverage up to $500 is provided for the insureds legal obligation to pay losses of the following situations except

1. Theft of a credit card
2. The dishonesty of an insured
3. Forgery or alteration of the insureds check
4. The insureds acceptance in good faith of counter fit money

A homeowners policy has a $100,000 liability limit, three individuals were injured on the insured premises during a single accident. What is the maximum the policy will pay out

1. $33,333
2. $100,000
3. $300,000
4. $1,000,000

Which coverage form would a condominium unit-owner purchase

1. HO-3
2. HO-4
3. HO-5
4. HO-6

Which of the following is an example of transfer of risk

1. Instillation of a smoke alarm
2. Purchase of insurance
3. Saving money
4. Maintaining a deductible

To be eligible for wage benefits under workers compensation policy, an employee must be incapable of earning full wages for at least how many working days

1. 3
2. 5
3. 7
4. 10

The main purpose of the nationwide marine is to

1. Standardize  classification of the types of property that may be insured
2. Describe the imports that are allowed to be sold and delivered
3. Allow the underwriters to tailor coverage for a variety of perils
4. Define the insurable interest of shippers

Under a homeowners policy, which of these will be covered

1. Arson by the insured
2. Discharge of pollutants
3. Air conditioning compressor fails
4. Water damage as a result of a pipe coming loss

A patron of smiths deli died from food poisoning because the chicken salad was not prepared correctly. What types of loss is this an example of?

1. Bodily injury
2. Property damage
3. Health injury
4. Personal injury

Under which proportion of the physical damage on a business automobile policy will you find perils such as explosion, theft and glass breakage?

1. Other than collision (comprehensive)
2. Collision
3. Property damage liability
4. Garage keepers liability

Which of the following commercial property conditions will grant an insurer subrogation rights?

1. Liberalization
2. Other insurance
3. Control of property
4. Transfer of rights of recovery against others to us

The set od conditions that apply to the entire business owners policy are called

1. Broad policy conditions
2. Common policy conditions
3. General policy conditions
4. Standard policy conditions

What is the action of the director may take when a consumer complains that they suffered financial harm as a result of an insurance license’s actions

1. Suspend the licensee without probable cause
2. Notify the licensee’s client on the allegations made complaint
3. Revoke the licensee license after a hearing has been conducted and a violation is found
4. Order the licensee to make restitution within 30 days or be subject to an administrative hearing

Which of the following is NOT a duty of the insured after a loss?

1. Supply information to the insurer about the claim, to include the time, place, circumstance and witnesses
2. Notify the insurer
3. Assist the insurer in any hearing trials or settlement upon request
4. Indicate insurance availability to other party immediately following accident

Under the workers compensation rights of recovery of benefits, the employees exclusive remedy for a personal injury is excluded by

1. Mini tort claim
2. Intentional tort
3. Unintentional tort
4. Punitive damage claim ‘

After the initial privacy policies and practices notice has been provided to a customer, the licensee must provide on going notices every

1. 6 months
2. 12 months
3. 24 months
4. 36 months

Under the national flood insurance program regular program, what is the maximum building limit available for a dwelling

1. $100,000
2. $150,000
3. $250,000
4. $500,000

Under a basic (DP-1) dwelling policy, which of the following is covered?

1. Theft
2. Personal liability
3. Damage to equipment used to service the premises
4. A barn used for farming purposes located 1 mile away

An individual who knowingly submits a false statement in support of a claim may be found guilty of

1. Coercion
2. Fraud
3. Misrepresentation
4. Twisting

All of the following are true of the Michigan motor vehicle financial responsibility law EXCPT

1. Proof of financial responsibility may be furnished by filling a certificate of insurance within the secretary of state
2. The certificate of insurance must show a minimum liability of $250,000 per person, $500,000 per occurrence. $10,000 for property damage
3. The certificate shall give the effective date of the motor vehicle policy
4. The policy must only insurer the person named therein

The minimum bodily injury and property damage automobile liability limits for Michigan are

1. $20,000/$40,000/$10,000
2. $50,000/$75,000/$20,000
3. $100,000/$300,000/$50,000
4. $250,000/$500,000/$100,000

You’re client is concerned that there pending bankruptcy might cause a company to cancel there businessowners policy. You explain that the insurer cannot cancel the policy for bankruptcy and refer them to the policy

1. Exclusions
2. Declarations page
3. Liability general conditions section
4. Property additional coverage section

After an automobile policy has been in effect for 55 days, an insurer

1. Cancel the policy for any reason during the policy year
2. Cancel the policy if the name insured has final revocation of the operators license during the policy period
3. Cancel the policy if the name insured had temporary suspension of his operator license during the policy period
4. Not cancel the policy for any reason during the policy period

What level of agent authority is given when the principal gives the agent authority either orally or in writing

1. Implied
2. Express
3. Applied
4. Apparent

Anette just purchased a vehicle and financed it through her credit union. Which of the following does NOT have insurable interest

1. The credit union
2. The owner of a vehicle
3. The driver of the vehicle
4. The title holder of the vehicle

The coverage that continues beyond the expiration of a liability policy written on a claims-made basis is referred to as

1. Extended reporting periods
2. Stop-loss provision
3. Extension coverage
4. Umbrella coverage

Which of the following dwelling policies endorsement covers a residence that is being built

1. Premises liability endorsement
2. Dwelling under construction endorsement
3. Personal liability endorsement
4. Limited theft coverage endorsement

Property protection insurance benefits consist of

1. The cost to repair the item with like new condition
2. The value of the loss of use it is it used on a daily basis
3. The lessor the amount of  reasonable repair costs or replacement costs less deprecation
4. The greater of reasonable repair costs or replacement cost less deprecation

The miscellaneous vehicle endorsement generally provides coverage for which of the following

1. Motorcycle
2. Motor home
3. Horse trailer
4. Four-wheel drive trick used to tow a camper

A producer must be appointed by the insurer within how many days form the date of the agency contract is executed, or the first insurance application is submitted

1. 10
2. 15
3. 20
4. 25

Which of the following is an exclusion of the businessowners policy (BOP) under the liability section

1. Liquor liability
2. Products liability
3. personal liability
4. advertising injury liability

never investing in stocks to prevent losing money is an example of what kind of risk

1. avoidance
2. limit
3. reduction
4. retention

most statements contained in the insurance application is considered

1. declarations
2. misrepresentation
3. representation
4. warranties

under a homeowners policy, which of the following is n insureds location

1. vacant land with a shed
2. cemetery plots of an insured
3. vacancy land rented to a farmer
4. renting a hall for a business meeting

how can a producer be protected form liability exposure arising from an inadvertent error or omission?

1. Not offer to sell any legal liability coverage forms
2. Purchase and maintain professional liability insurance coverage
3. There is no way to be protected as all coverage forms include some form of legal liability
4. Offer only comprehensive coverage forms that specifically exclude coverage for the property of others

Which type of insurance provides protection against legal liability from any risk arising from the ownership, maintenance or use of business premises and operations

1. Errors and omissions insurance
2. Professional liability
3. Employment-related practices liability
4. Commercial general liability

In the process of having a tree cut down, a gust of wind blew the tree into a homeowners roof, the homeowner did NOT need to prove negligence due to the doctrine of

1. Commercial liability
2. Vicarious liability
3. Absolute liability
4. Strict liability

A business that transports its own cargo and also transports cargo for hire would be referred to as

1. Motor carrier
2. Common carrier
3. Trucker
4. Contact carrier

Under the homeowners auto liability insurance policy, an injured insured will receive actual loss of income up to 3 years after the accident or until the insured dies, whichever is sooner. What percentage of income is received?

1. 66
2. 75
3. 85
4. 100

What does the special provisions- Michigan endorsement do

1. It modifies the Michigan insurance agent license laws
2. It identifies the duties of the Michigan insurance director
3. It modifies the homeowners policy to comply with Michigan law
4. It makes it easier for alien insurance companies to do business in Michigan ‘

What part of the garage coverage from provides liability coverage for physical damage to automobile in the care, custody and control of the insured ‘

1. Garage liability coverage
2. Specific causes of loss
3. Garage keepers coverage
4. Physical damage coverage

Which of the following would be covered on an unendorsed homeowners form

1. Smoke damage from a fire in a fireplace
2. Damage to home as a result of an earthquake
3. Water damage as a result of an overflow from a sump pump
4. Loss of property due to the insureds failure to save and preserve property after a partial fire in the home

The homeowners policy covers which of the following losses

1. Theft in a dwelling under construction
2. Vandalism if a dwelling has been vacant for 20 days
3. Loss covered by birds and domestic animals
4. Damage by flood

In Michigan while driving a rental vehicle where the rental insurance is primary what are the bodily injury limit of the unendorsed rental car insurers policy

1. $250,000/$500,000
2. $50,000/$100,000
3. $20,000/$40,000
4. $0

A  person who decides the acceptability of a risk is identified as

1. A producer
2. An adjuster
3. A regulator
4. An underwriter

What guarantees temporary coverage

1. Declarations
2. Application
3. Warranty
4. Binder

Under the Michigan essential insurance act, which of the following applicants is NOT eligible for home insurance

1. The owner occupant of a house
2. A tenant is in an apartment building
3. The nonresident owner of a rental property
4. The owner occupant

Falsifying the benefits advantages or conditions of an insurance policy is an example of the following

1. Misrepresentation
2. Concealment
3. Coercion
4. Forgery

The PRIMARY purpose of an endorsement is to

1. Modify the original policy
2. Describe the covered loss
3. Define the terminology
4. Increase the premium

When an insured losses control and damage a building in Michigan, which part of the no fault coverage pays for the damage

1. Residual liability
2. Property damage
3. Limited property damage
4. Property protection insurance

Each commercial property coverage part MUST include all of the following EXCEPT

1. Causes of loss form
2. Commercial property declarations
3. Any mandatory endorsement
4. Employee theft

The type of construction that uses material that can withstand fire doe AT LEAST 2 hours is

1. Masonry
2. Frame
3. Fire-resistive
4. Non-combustible

Using there own vehicles for business, an employee ran a red light and hit another vehicle causing property damage and boldly injury and a third party. Under the hired auto and non owned liability endorsement which of the following is a true statement

1. Both property damage and bodily injury will be covered to the third party
2. Only damage to the third party vehicle will be covered
3. Only bodily injury will be covered
4. The claim will be denied

Which of the following coverage forms will provide coverage for a farmers $750,000 hay combine harvester that operates both on and off roads

1. Farm personal property
2. Livestock coverage form
3. Business automobile policy
4. Mobile agriculture machinery and equipment

Which of the following is covered by the cause of loss special form under commercial property?

1. Smog
2. Flood
3. Mudslide
4. Windstorm

If a residence is made uninhabitable by a covered loss, what coverage applies

1. Coverage A-dwelling
2. Coverage B- other structures
3. Coverage C- personal property
4. Coverage D- loss of use

Which term describes the fact that insurance contract are unequal

1. Unilateral
2. Personal
3. Indemnity
4. Aleatory

Insurance producers have duties and responsibilities to the insured and the insurer. Which of the following responsibilities does a producer owe the insured during the policy year

1. Help the insured file and follow up on claims
2. Notify the insurance department when claims are paid
3. Work with rating bureaus to establish insurer ratings
4. Offer to pay the insureds premiums if they are unable to do so

A concurrent causation is a

1. Loss to a pair or set
2. Claim involving two or more parties
3. Loss caused by two or more perils
4. Claim covered by two or more insurers

The jones act is a federal law that allows members of shippers’ crew to sue for injury caused by

1. Other people
2. Passenger negligence
3. The employers negligence
4. The employee/other employees

Which type of hazard arises when an insured leaves the car keys in the ignition and doors unlocked while running into the party store for a short time

1. Moral
2. Morale
3. Physical
4. Risk

Which of the following is insured under coverage A- dwelling in a homeowners policy

1. A structure unattached to a dwelling
2. Land on which a dwelling is located
3. On-site materials used to repair a dwelling
4. Debris removal

In writing at the time of renewal, the servicing carriers for the Michigan automobile insurance placement facility (MAIPF) MUST offer of the insured ‘

1. The opportunity to request reassignment to another service carrier
2. The name of an alternative service carrier that would provide coverage
3. A renewal with lower, standard insurance rates for the same coverage
4. A premium estimate for the same coverage with a standard carrier

The purpose of the Michigan workers compensation placement facility is to

1. Allow for the creation of Michigan based captive insurers to form their own company
2. Allow the state of Michigan the opportunity to generate funds by selling workers compensation insurance
3. Provide insurance to any person who is unable to obtain workers compensation coverage through ordinary methods
4. Provide for a state funded insurer that will provide competitive rates in order to protect the public when purchasing workers compensation coverage

All of the following offense are included in personal and advertising injury coverage except

1. False imprisonment
2. Malicious prosecution
3. Legal eviction
4. Wrongful entry

A commercial liability loss is insured by two insurers. Both policies require all insurers to pay the same amount up to the policy with the smallest limit. The other insurance condition calls for loss payment of contribution by

1. Recovery
2. Proportion
3. Equal shares
4. Excess shares ‘

Before an individual can sell, solicit or negotiate, non-admitted insurance policies, what are they required to obtain

1. Counselor license
2. Surplus lines license
3. Limited lines license
4. Certificate of authority

Damage to a personal property Insured on an agreed value basis was destroyed in a fire. Payment would be limited to the

1. Set amount of the item
2. Appraisal amount of the item
3. Deprecated value of the item
4. Amount of the replacement item

The PRIMARY function of an umbrella liability insurance policy is to provide coverage for

1. Personal property damage caused by inclement weather
2. Legal claims that exceed the policyholder primary liability insurance policy
3. Multiple dwelling and vehicle under a single insurance policy
4. Vehicles that are either rented or borrowed by the policyholder

When a producer appointment has been terminated, the producer may

1. Service the existing policy
2. Increases the policy limits
3. Bind new coverage
4. Renew a policy

According to the personal automobile policy, the definition of occupying does NOT include

1. Under a vehicle
2. Sitting on a vehicle
3. Getting In a vehicle
4. Getting out of a vehicle

Under the liability section of a homeowners policy, which of the following would be covered under additional coverage

1. First aid for the insured and the insureds family members
2. Damage to the insureds home if the damage was caused accidentally by the insured
3. Reasonable expenses incurred by the insured at the company’s request in the investigation or defense of a claim
4. Any judgment amount over and above the specified limit of liability included in the policy itself

Which of the following is covered under coverage E and coverage F under a homeowners policy

1. Intentional actions by an insured under the policy
2. Premises rented by an insured for non-business use
3. Rental of any party of the premises other than the residence
4. Liability arising out of the transmission of a communicable disease by the insured

Which of the following is NOT a basic peril on a homeowners forms

1. Riot
2. Smoke
3. Volcanic eruption
4. Flood

Which condition may void a homeowner policy

1. Vandalism
2. Concealment
3. Unpaid premiums
4. Liberalization clause

Which of the following situations is excluded in the homeowners policy

1. Use of a rented sailboats under 26 feet
2. Breaking a neighbors windows while playing baseball
3. Running over the neighbors fence in a fit of rage
4. Accidently hitting another golfer in the head with a ball while golfing

Singing another name to an application for insurance is

1. Coercion
2. Forgery
3. Misrepresentation
4. Twisting

Which endorsement can an insured add to their business automobile policy to cover the owner of the leased vehicle

1. Miscellaneous vehicle endorsement
2. Drive other car coverage endorsement
3. Additional insured-lessor endorsement
4. Individual named insured endorsement

Which section of an insurance policy clarifies the meaning of certain terms used in the policy

1. Conditions
2. Declarations
3. Definitions
4. Insuring agreement

An insured losses control of his car, hitting the neighbor’s car, damaging their garage and the insured’s bike which the neighbor was using. The insureds automobile liability policy will NOT cover the

1. Injuries to the occupants
2. Damage to the neighbors house
3. Damage to the neighbors car
4. Damage to the insured bike

Which of the following is excluded

1. Fire
2. Vandalism
3. Wind and hail
4. Earth movement

Which section pf policy outlines when a loss will NOT be covered

1. Conditions
2. Provisions
3. Exclusions
4. Insuring agreements

An insured was reviewing the section of the policy that specifies the meaning of certain terms used. Which of the policy was the insured reviewing

1. Conditions
2. Declarations
3. Definitions
4. Exclusions

Under the your duties if injury occurs section of the workers compensation policy, which of the following is NOT required of the employer

1. Report the injury to the state
2. Report the injury to the insurer ‘
3. Cooperate with the insurers investigation
4. Provide medical services for injured party

A contract is only valid when preformed by which of the following parties ‘

1. Competent
2. Competitive
3. Conditional
4. Considerate

The conditions section of a business automobile policy states that when a loss occurs, the insurer

1. Must pay the cash value of the vehicle
2. Must replace the vehicle
3. May either pay for, repair, or replace the vehicle
4. May let the insured decide how to be compensated

The definition of business under the homeowners policy includes which of the following

1. The rending of home daycare services to a relative of an insured
2. Providing home daycare services for which no compensation is received
3. A trade, profession, or occupant engaged in a full-time or part-time or occasional basis
4. Volunteer actives for which no money or received other then payment foe expenses incurred to perform the activity

While attending a pool party at your insureds home a guest is injured by slipping on the cement surrounding the pool. Which portion of the homeowners policy will pay for the emergency room bill?

1. First aid to others
2. Not paid, no coverage
3. Personal injury protection
4. Medical payments to others ‘

An insured was sued for negligently causing injuries in a car accident. The court did NOT find the insured to be negligent because

1. The accident resulted in injuries
2. They did not breach the legal duty owned
3. They owned the legal duty to drive safely
4. There actions were the proximate cause of the accident

According to the conditions of a personal automobile insurance policy, what MUST the insured party do after a loss occurs?

1. Ensure premiums are paid up to date
2. Refrain from legal action without the insureds approval
3. Permit the insurer to inspect the vehicle before it is repaired
4. Report the vehicle collision to the department of insurance and financial services ‘

What coverage would a contractor buy to provide protection for a subcontractors negligence

1. Disability
2. Workers compensation
3. Owners and contractors protective liability
4. Contractual liability

Which of the following is an element insurable risks

1. Risk must be expected
2. The loss must be calculable
3. Risk must be finically insignificant
4. Cost of insurance must be unaffordable

If a home day care coverage endorsement is added to the homeowners policy what is the premium based on

1. The number of children the insured cares for
2. The type of business incorporated
3. The location of the home day care
4. The square footage of the house

Which of the following commercial property endorsements allows an insured to pay premiums based on the actual monthly amount of inventory

1. Spoilage
2. Peak season
3. Value reporting
4. Building ordinance

Which of the following watercraft could the insured purchase and be assured it is automatically covered for liability under their homeowners policy

1. A 30 foot sailboat
2. A 50 foot sailboat
3. An outboard sailboat with 15 horsepower engine
4. An outboard sailboat with 50 horsepower engine

According to the conditions of commercial general liability, what are the insureds duties in the event of an occurrence, claim or suit

1. They must provide written notice of a claim or suit within 7 days of an occurrence
2. They must promptly notify the insurer of an occurrence that may result in claim
3. They should provide notice to the insurer of all business matters
4. They must notify their legal counselor within 7 days

Which of the following is a reason to purchase a commercial umbrella policy

1. To comply with state minimum coverage requirements
2. To reduce the need for reinsurer or surplus lines insurance
3. To cover large losses that exceed the underlying property coverage
4. To cover large losses that exceed the underlying liability coverage

Under the Michigan essential insurance act, which of the following classification may NOT be used by rating automobile insurance

1. Age
2. Type of use
3. Martial status
4. Claims history

Which of the following endorsements require the insured to hire a security service with a guard that  makes hourly rounds on the premises while the business is closed?

1. Vandalism and malicious mischief endorsement
2. Utility services endorsement- time element
3. Protective safeguard endorsement -P-3
4. Utility services safeguard endorsement

Under a Michigan fire insurance policy, if an insured and an unable to agree on the amount of a loss, which of the following methods of settlement is used

1. Either party can invoke the appraisal condition
2. A lawsuit in instituted by the insured against the insurer
3. An average of the insured and the insurers estimates are used
4. An informal hearing before a designee of the commissioner of insurance is conducted

An insuring agreement contains a promise to the policyowner and in general terms, states the

1. Policyowners rights under contract law only
2. Insurers rights under contract law only
3. Premium costs
4. Coverage provided

Who of the following is REQUIRED to be licensed as an insurance producer

1. An underwriter at an insurer
2. An administrator of a group plan
3. An officer or director of an insurer
4. A business entity soliciting insurance

Under a fire insurance policy, what procedure may be used to set the amount of actual cash value of loss when the insurer and insured disagree on the amount

1. Either party may demand the matter be settled by binding arbitration
2. Either party may demand the amount of actual cash value of the loss be set by appraisal
3. Either party can demand the amount and the actual cash value be determined by an independent mediator
4. either party may demand the matter be settled under any of the fire policies alternative dispute resolution (ADR) provisions

the un-endorsement businessowners policy (BOP) insurers covered property on what basis

1. name peril
2. open peril
3. schedule
4. floator

what group of employees is covered under the federal employers liability act (FELA)

1. government workers
2. Michigan employees
3. interstate railroad employees
4. employees on ships

under personal automobile medical expenses, the insurer paus reasonable expenses for

1. medical or funeral services
2. rental car reimbursement
3. pain and suffering
4. long-term disability care

a producer who knowingly solicits new insurance risks by an insolvent insurer is guilty of

1. defamation
2. enticement
3. forgery
4. fraud

absolute liability is BEST defined as

1. liability without regard to fault
2. liability spilt between two offending parties
3. total liability attributed to the party most at fault
4. liability attributed to a party by a court decision or order

proof of financial responsibility may be satisfied be satisfied by furnishing a certificate of insurance that provides which set of required information

1. name of the insured, insureds date of birth, and the effective date of the motor vehicle liability policy
2. name of insured, vehicle covered and effective date of the motor vehicle liability policy
3. vehicle covered and the effective date of the motor vehicle liability policy
4. name of insured, insured date of birth, and vehicle covered

the law of large numbers means that

1. cannot estimate loss due to a large number of individuals and must use some others means to determine predicted loss experience
2. estimate how many losses will cover within a group over a stated period of time, but not specifically by which individual
3. use the law of large numbers for purposes other predicting loss
4. assume those who will suffer a loss within a stated period of time

under the exclusion in the dwelling policy special form (DP-3), a failure to save and preserve property after a loss is

1. fraud
2. neglect
3. wrongful act
4. intentional loss

a false or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured is

1. intimidation
2. inducement
3. discrimination
4. defamation

which of following is true in regards to the other states section pf the workers compensation policy

1. the insured need not notify there insurer when work begins in a new state
2. provide coverage for states not listed in the information page
3. the state must be listed in the information page of part one
4. all states are automatically included

a grandmother living alone decides to move form her house into an assisted living facility. The family helps her move and leaves behind all the items she cannot take with her. The grandmothers house is defined as

1. vacant
2. assigned
3. abandonment
4. unoccupied

under a homeowners policy, the special coverage limit for watercraft is

1. $500 including trailers or any equipment
2. $1,000 for the watercraft with no limit for powered accessories
3. $1,500 including trailers and equipment
4. $2,500 provided it is not used for business purposes

After the final disposition of the matter, an insurance producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction with how many days?

1. 90
2. 60
3. 45
4. 30

When an insurer appointment with a producer is terminated, the party that MUST notify the producer of the termination is the

1. Insurer
2. Secretary of state
3. Local agency
4. National association of insurance commissioners (NAIC)

To comply with the Michigan requirement for a certificate of insurance, if stopped by an officer, which of the following statement is NOT true?

1. a printed copy of a certificate of insurance issued by an authorized insurer is always acceptable
2. an electronic copy of a certificate of insurance that can be produced on a phone or tablet is acceptable
3. it is not necessary to carry proof of insurance with you so long as it can be looked up online at a later date
4. a policy officer may require you to forward an electronic copy of a certificate of insurance to a specified local provided by the officer

under a homeowners policy, the duties of the insured after a loss to property are contained in which section of the policy

1. insuring agreement
2. conditions
3. definitions
4. coverage

the standard mortgage clause states a loss is payable to the

1. insured only
2. mortgagee only
3. mortgagee and insured
4. contractor preforming the repairs and insured

what is the property policy provision as long as the policy limit equal or exceeds this amount, the insured will NOT be assessed a coinsurance penalty

1. pair and set clause
2. specific insurance
3. stated amount
4. peak season

which license allows charging a fee for offering advice on the advantages and disadvantages of insurance policies

1. broker
2. counselor
3. producer
4. solicitor

under a commercial liability policy, the aggregate limit stated in a policy is the

1. total limit that an insurer will pay under a given coverage for any single claim that occurred during the policy period
2. most money that an insurer will pay under a given coverage for all claims that occur during the policy period
3. limit of the coverage as identified by the dollar amount based upon the current market value of any loss
4. limit of the all coverage as identified in a given policy net od any retention or deductible

a producer who diverts funds of an insurer may be found guilty of

1. coercion
2. fraud
3. rebating
4. twisting

a licensee can disclose a consumers policy account number to

1. a consumer agency
2. a marketing agency
3. an affiliated third party
4. a member in an affinity program