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level: Level 1

Questions and Answers List

level questions: Level 1

guarantees work of someone appointed to take financial responsibility for othersFiduciary Bond
often required of litigants in civil suits to protect opposing partiesCourt Bond (a.k.a) Litigation
Court bond that guarantees to appearance of a defendant in courtBail Bond
Purchased to postpone payment of damage during the appeal processAppeal
Protects against damages to property taken as part of the litigation processAttachment
pays damages if a person or business is wrongly affected by court actionInjunction
assures the return of property to its rightful ownerReplevin
protects the public from the public official's lack of performancePublic Official Bond
guarantees that an importer/exporter will pay all customs taxes and fees, and obey regulations and laws.Customs Bond
guarantees that the principal and interest will be paid per the terms of the contract and promissory noteFinancial Guarantee Bond
guarantees that an insurer of a copy of a lost financial instrument will not suffer an economic loss if the owner of the instrument later finds and transacts the originallost instrument bond
guarantees the health, safety, and welfare of the public during and after mining operations, and guarantees the land will be restored to its original conditionReclamation bond
pays worker's compensation filed by the self-insurers' employees when the self-insurer itself cannot meet this obligationSelf-insurance Workers' Compensation Bond
guarantees a principal will faithfully perform duties as prescribed by law or bylaws of the obligee.Faithful performance of duty bond
guarantees that the principal (employee) will NOT do something. Written on "Employee Theft and Forgery Policy" form. Similar to commercial crime insurance.Fidelity Bond
In a fidelity bond who is the principal, obligee, and Surety?employee, employer, insurer
Equipment built to operate under internal pressure or vacuum, other than the weight of its contents is covered under?Equipment Breakdown Protection Coverage A
Mechanical or electrical equipment that generates, transmits, or utilizes energy is covered under?Equipment Breakdown Protection Coverage B
Communication and computer equipment (but not data or storage media) is covered under?Equipment Breakdown Protection Coverage C
specified piece of equipment covered by the equipment breakdown protection coverage form.Object
coverage only available if the insured has also selected Business Income and Extra Expense, Extra Expense only, or Spoilage Damage Coverage.Utility interruption coverage
protects the insured party from an insurer who initially approves coverage, but then later denies coverage after the insured pays for repairs.Estoppel
factual statements from the insured upon which an insurance policy is based.Representations
an oral or written statement providing temporary insurance coverage until an insurance policy can be issues.Binder
law that allows insurer to seek indemnification from third-party/at-fault party in a claim.Subrogation
holds a person liable for his actions regardless of how much care he demonstrates.Strict Liability
a law set forth by governmental authority such as state or citystatutory law
Jared hopes to purchase a new insurance policy for his car, but he has extremely poor driving record. The insurance company decides to issue Jared an insurance policy, but charges him a premium much higher than the average driver. The insurance company is practicing what?Risk Reduction
Provision that mandates the insurer notify the claimant of its choices within 30 days of receiving proof of loss.Company's Options provision in the standard fire policy
coverage applies to each insured separately, as if no other insured existed.Severability of Interest
Federal law enacted in 1916 establishes compensation for federal service employees for wages lost due to job-related injuries.Federal Employees Compensation Act FECA
states that any changes to a policy form that broadens coverage without increasing the premium will automatically apply to existing policies.liberalization clause
provision that allows the insurer the choice of whether to repair, rebuild, or replace damaged property.Company's Options provision in the standard fire policy
provision that states the insurer may choose whether to take all, or part, of the damaged property at the agreed or appraised value.Company's Options provision in the standard fire policy
Valuation was usually done on an ACV basis. The only covered perils where fire and lightening It was a named peril policy only It is no longer used in its original formatStandard Fire Policy AKA The 165 Line Policy
True/False Negligence, whether intentional or not, is not covered in a broad insurance policy.True
For loss settlement purposes, most homeowner policies pay for damages to personal property at _____ value, and damages to structures at _____ value.AcActual Cash Value / Replacement Cost Value
How much is the limit for Credit Card fraud or forgery as an additional coverage to homeowner?$500
"comprehensive form" open-peril coverage for structures and personal property. Most comprehensive coverage available (most expensive but most beneficial)HO-5
"special form" open-peril coverage for dwelling and structures. named-peril coverage for contents (covers against all broad form perils)HO-3
"broad form" Named peril policy - covers insured's house and personal propertyHO-2
"Contents broad form" Known as renter's insurance (Think 4-rent) Covers all broad form perils for contents only (does not insure houses or other structures)HO-4
"Unit owners form" known as the condo form, cover's owners belongings and all finished surfaces of the individual condominium unit.HO-6
"Modified coverage form" named-peril coverage w/fewer perils. Covers property at ACV. Is the cheapest form of Homeowner's insurance.HO-8
Dwelling policy "Basic Form" named-peril coverage, covers only fire, lightening, and internal explosionDP1
Dwelling policy "broad form" named-peril coverage, covers fire, lightening, internal explosions and more.DP2
Dwelling policy "special form" open-peril coverage to structures. Named-peril coverage to personal property (includes board perils). So broad it has a list of exclusions which includes theft.DP3
Section 1 of the HO Policy that covers DwellingCoverage A
Section 1 of the HO Policy that covers Other StructuresCoverage B
Section 1 of the HO Policy that covers Personal PropertyCoverage C
Section 1 of the HO Policy that covers Loss of UseCoverage D
Section 1 of the HO Policy that covers Additional Property CoverageCoverage E
Section 1 of the HO Policy that covers ExclusionsCoverage F
Section 1 of the HO Policy that covers ConditionsCoverage G
which auto policy coverage will pay for an insured auto catching on fire?Comprehensive Insurance
what occurrence would not be covered under the Comprehensive section of a PAP?Roll Over