Insurance State Exam

https://www.youtube.com/watch?v=CWlxBVan_iQ&t=3614s&pp=ygUraW5zdXJhbmNlIGV4YW0gcXVlZW4gZWxlbWVudHMgb2YgYSBjb250cmFjdA%3D%3D

What are the three standard coverage forms provided by the National Flood Insurance Program (NFIP)?

Dwelling form, general property form, and residential condominium building association policy (RCBAP) form

When can partners or sole proprietors be covered for workers compensation benefits?

when they choose to be included as employees

How long is an insurer required to maintain records of cancellations and nonrenewals?

one year

Which legislation prevents a financial institution from disclosing a consumer's nonpublic personal information to an unaffiliated third party unless it provides notice to the consumer and allows the consumer an opportunity to opt out?

Gramm-Leach-Bliley Act (GLBA)

An agent whose license is revoked in Virginia cannot apply for another license for how long?

five years

How long must an agent keep records of all insurance transactions?

3 years

Beth, a Virginia agent, moves to a new office in Alexandria on May 1. She must report her new business address to the Commission by what date?

May 31

The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. Molly's claim for damages under Coverage A of her policy was $200,000 and her claim for damages under Coverage C was $150,000. How much did Molly's insurance company pay to the mortgagee?

$100,000

Which of the following coverages found in a liability insurance policy is considered goodwill coverage?

medical payments to others

Dwelling policy form DP 1 Basic Form covers the dwelling on what valuation basis?

actual cash value basis

Ava lives on a large estate and has many employees who work at the estate. Which of the following would NOT be considered a "residence employee" under her homeowners policy?

Elena, a physical therapist who provides treatments in Ava's home

Which of the following types of insurance companies is owned by its policyowners, who may receive distributions of company profit through policy dividends?

mutual insurance company

Allie was shopping at the mall on a busy Saturday afternoon. She wore a bracelet with expensive charms attached to it, which she set down on a store counter as she was examining new charms. When she looked up, the bracelet was gone. Which of the following types of crime perils applies to this loss?

mysterious disappearance

Joyce is a sales representative and employee of Main State Insurance Company. She sells only Main State's insurance products. Under which type of marketing system does Joyce work?

direct writer or captive agent

Daisy and Fred have a homeowners policy that identifies their son Lex as an "insured." Lex is going away to college and will be living in a dorm. Is Lex still an "insured" under his parents' policy once he moves into the dorm?

Yes, the definition of "insured" includes students away at school.

Which document do applicants for auto insurance use to indicate their state of residency or that their vehicle is principally garaged in that state?

residency statement

Samantha deliberately caused bodily injury to Theresa, who then sues her for damages. When Samantha submits a liability claim under her homeowners policy to cover Theresa's lawsuit, how will her insurer respond?

It will deny the claim because Samantha's injury to Theresa wasn't accidental.

Which of the following must accompany a notice of nonrenewal of a property insurance policy?

the reason or reasons for nonrenewal

Which of the following types of insurance company only covers the risks of the parent organization that owns it?

captive insurance company

Part B - Medical Payments Coverage under a personal auto policy (PAP) applies to necessary medical and funeral services as long as the expenses are incurred within what time period following the accident date?

three years

Atlas Insurance Company buys insurance to transfer some of the risks involved in its larger cases. What type of company would Atlas use for this purpose?

reinsurance company

Needing the money, Ted burns down his house to collect the insurance proceeds. On what grounds might the insurance company deny coverage if it can show that Ted intentionally burned the house down?

fraud

Fire policies on owner-occupied dwellings in effect less than how many days are exempt from the rules regarding cancellation?

90 days

Ned just bought a homeowners policy from Main Street Insurance Company. However, he did not disclose that he operated a lawn mower repair business in his garage and that he employed two mechanics. On what grounds might the insurer deny coverage in the event of a claim?

concealment

Which of the following acts would not be considered rebating by an agent or an insurer?

paying a personal visit to induce a person to buy insurance

The residual market makes insurance available to insurance risks that cannot obtain coverage through the voluntary market. Which of the following are considered residual market programs?

FAIR plans and auto assigned risk plans

What is the basic principle underlying the law of large numbers?

Prediction becomes more accurate as the number of exposure units increases.

The Virginia Property and Casualty Insurance Guaranty Association protects risks associated with which type of insurance?

homeowners insurance

To be able to predict the number of future losses occurring among their insureds, insurers rely on which of the following?

the law of large numbers

What type of liability insurance would cover an employee's claim of sexual discrimination and sexual harassment by her supervisor?

employment practices liability (EPL)

Jack and Jill are vacationing at a golf resort when a thief enters their room and steals a laptop computer, golf clubs, cash, and clothing. Jack and Jill contact their homeowners insurer and ask the claim representative whether they are covered for this loss. What does the representative tell them?

Coverage applies just as it would if were stored at the insured's home.

Which of the following is not required before an agent can charge a fee for servicing an insurance policy?

The Commissioner must approve the fee.