NM Insurance/ Property and Casualty license

Insurable interest must exist on property insurance at___?

time of loss

For one intentional violation of the insurance code, the maximum civil penalty is...?

$10,000

Written binders are good for a maximum of ____ days, unless extended with approval of the insurer:

90

What type of insurance is unregulated by state law?

Ocean marine

Defamation is

misstating financial condition

One of main purposes of P&C Guaranty Assoc is to..?

cover claims of insolvent insurance companies

Underinsured motorist coverage limits, if written, must be at least..

$25k/$50k/$10k

Agents must notify the Superintendent of a change of address within ____ days?

20

Funeral benefits are covered under worker's comp up to how much?

$7500

Uninsured Motorist Property damage liability is subject to a deductible of..?

$250

Minimum auto liability limits in NM are??

$25K/$50K/$10K

Part I of a package policy is the ____ section and does it have a deductible??

Property section, yes

Standard deductible on most property policies is??

$250/occurence

Part II of a package policy is ____and does it have a deductible?

Liability section and no deductible

Examples of packages policies

HO, BOP, and the CPP

Inflation guard endorsement

automatically keep policy limits in synch with the rate of inflation

How much does the inflation guard endorsement on a BOP increase policy limits on anniv date each year??

8%

Are BI and PD coverage included in HO if there is damage arising from the loading or unloading of motor vehicle?

no

NFIP first-tier flood insurance is only available up to what amount?

$35,000

Dwelling property policies do not cover breakage of glass after how many days of vacancy?

60

Where do you read on a HO policy to determine who is the "insured'?

Definitions

Expediting expense on a Boiler & Machinery policy covers what?

temporary repair or temporary replacement NOT PERMANENT

Bailee's Customer's Goods Floater is written for who?

Dry cleaners and appliance repair shops

Max coverage permitted under the regular NFIP program is how much for a single family home?

$250,000

What are the two parts that are always included in package policies?

Property and Liability

Trip transit policy covers cargo for how many trips?

one specific trip

Purpose of subrogation is to

keep the insured from collecting twice

Four parts of a policy D-I-C-E

Declarations, Insuring Agreement, Conditions, Exclusions

Elements of a legal contract C-O-A-L

Consideration, Offer, Acceptance, Legal purpose and Legal capacity

Peak season endorsement is used by what kind of company?

Companies with fluctuating inventories

Standard deductible on BOP?

$500

Broadest type of crime insurance is called?

Theft, Disappearance, and destruction

how is ACV calculated?

Replacement cost - depreciation *DOES NOT include value of land

A named non owner policy covers...?

One driver only to drive non owned cars only

CGL policy automatically covers Premises liability (BI and PD) under Coverage __?

Coverage A

Products liability applies only after what?

After the product is out of the control of the insured

Is cost of defense included in supplementary payments of a PAP?

NO, but it is in insuring agreement in ADDITION-to limits

Supplementary payments on a PAP include how much for bail bonds?

$250

How much do supplementary payments on a PAP include for Loss of earnings for trial appearances?

$200/day

What is Part A coverage on CGL?

Part A - Liability (BI and PD)

What is Part B coverage on CGL?

Part B- Personal Injury and Advertising

Part C coverage on CGL

Medical payments to others

Basic extended reporting period (ERP) on CGL allows someone with a pending claim how many additional days after expiration to notify the insurer?

60 days

Supplemental ERPs are available for extra premium. When purchased, it allows how long to turn in a claim that occured during policy period?

indefinite amount of time

Under workers comp, the term "temporary total" disability means what?

that you cannot work right now, but you will fully recover and return to work

under worker's comp, the term "permanent partial" disability means what?

that you lost a limb and you might return to work but not be able to perform all job functions

under worker's comp the term "permanent total" disability means?

you will never work again

Loss of income is covered by worker's comp up to what percentage of average weekly wages?

66 2/3% of weekly wages

what is the Act that requires commercial policies be written to cover trucks, environmental restoration and have limits of coverage?

Motor Carrier act of 1980

CPPs are subect to a premium audit for how long after policy expiration?

3 years

The limits of liability are found where?

Declarations

Supplementary payments

found in liability section of a policy and are paid in addition to the liability limits

Purpose of the "conditions" section

state the rules, which stipulate the conditions under which the coverages are provided

Cancellation provisions are found in which section of a policy?

Conditions

Minimum deductible in earthquake policy is?

$250

What type of policy is Basic Dwelling form DP-1

Named or specific peril policy

Who sets the Experience Modification factors for Workers compensation insurance?

NCCI

Is an auto dealer qualified for a BOP?

no

A policy introduced to solve "long tail" problems in certain areas of liability insurance is known as

Claims made form

On a BOP, the Period of Restoration starts on the:

date of loss

On a BOP, signs attached to the building are covered up to what amount:

1000

An automobile dealer with cars in inventory that have fluctuating values needs a:

Reporting form

Changes to a CPP may be made by adding a

Endorsement

The liability section of a BOP covers what type of liability?

Contractual

The name of the bailee type coverage that provides legal liability for damage to customers' cars that are left with the insured for service, repair or storage is:

Garage keepers legal