TN Property Missed

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured’s building, and $30,000 of expediting expenses, how much will the insured collect under the policy?

$175,000

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay

$30,000

Which of the following would NOT be considered a source of insurability information by an insurer?

The applicant's marital status

Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports?

Within 30 days after the end of each month

A pizza shop has a neon sign... What is the maximum amount the business's building and personal property policy will pay for the damage to the sign?

$2,500

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

Consequential

Which of the following is NOT true about earthquake coverage?

Coverage is commonly provided through a federally-funded program

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

Dwelling coverage includes all of the following EXCEPT

Land on which the dwelling is located

Property insurance that provides $100,000 coverage for a building and $50,000 for personal property at a single location is called

Specific coverage

The Federal Fair Credit Reporting Act

Regulates consumer reports

On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is

The same as provided on the DP-2 Broad form

Under the conditions of a Film Coverage Form, how long must the insured maintain records of each production?

3 years after the policy expires

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

In property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket?

Deductible

Dwelling policy Coverage C – Personal Property will cover all of the following EXCEPT

Animals and birds

An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for?

80% of the property's replacement cost or more

All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT

Replacement cost

An insurance contract must contain all of the following to be considered legally binding EXCEPT

Beneficiary's consent

In insurance, an offer is usually made when

An applicant submits an application to the insurer

If a building is totally destroyed by fire, how much is the insurance company liable for at the time of the loss?

The actual value of the property

If a nonrenewal notice does not contain a reason for the nonrenewal action, how many days after the effective date of the nonrenewal does the insured have to send a written request to the insurer for a reason?

15 days

How soon after receiving proof of loss must an insurer advise the first-party claimant of acceptance or denial?

60 days

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

If a resident insurance producer moves from Tennessee to another state... they must file within how many days?

30 days

Any of the following would be considered an Unfair Trade Practice EXCEPT

Attempting to settle a claim by the use of arbitration

An insurance producer may NOT act as an agent for an insurer until

Appointed

All of the following could be considered rebates if offered to an insured EXCEPT

Dividends from a mutual insurer