Insurance Alabama exam Another way of describing a multi line policy is call it a policy verified answer Package If your house is insured for 100 000 then your HO 3 homeowners policy automatically provides coverage for up to what amount for loss of use verified answer 30 000 Though they can be raised the standard Homeowners limits for coverage E Personal Liability and coverage F for Med Pay to other are which of the following verified answer 100 000 and 1 000 You are driving with PAP liability limits of 30 60 25 when you run a stop sign and hit Calvin and his wife Clara in their sedan You are hurt both vehicles are damaged and both Calvin and Clara are injured Calvin in the amount of 20 000 and Clara in the amount of 40 000 which section of your policy pays for injuries verified answer Part B Medical Payments When the basic perils are applied to Homeowners we lose and and add the peril of verified answer Sprinkler leakage sinkhole collapse and theft Assume that you hire ABC contractors to build you a garage Two weeks after it s completion you drive into the garage and begin to exit your car when the garage collapses You arm is broken Your iPhone is destroyed and your car is damaged ABC s completed operations coverage will pay for all of the following except verified answer Your garage The collision coverage of a personal auto policy covers with two perils verified answer Collision and upset Under the law of agency the producer is a and the insurance company is the verified answer Agent principal Which of the following would not be eligible for a business owners policy verified answer Credit union Equipment breakdown coverage written with no endorsements pay for losses on what basis verified answer Replacement cost basis You have med pay limits of 10 000 when you carelessly drive off the road while talking on your cell phone You sustain injuries of 2 000 passenger A suffers injuries of 8 000 and passenger B is injured in the amount of 12 000 What will your company pay in med pay benefits to the 3 of you verified answer 20 000 You 2 000 A 8 000 20 000 B 10 000 the 10 000 per person reduces his claim of 12 000 Your 10 000 diamond engagement ring is scheduled on a personal articles floater for 10 000 If it is stolen how will your company pay verified answer Personal articles floater will pay 10 000 David cuts off three fingers off his right hand while testing a chain saw in the tool rental department of Calvin s hardware This would result in what type of liability claim verified answer Premises liability Calvin s hardware was insured under a CGL with company A in 2010 Company B in 2011 and company C in 2012 Assume that a customer is negligently injured in Calvin s store in 2010 and a claim is filed in 2013 If company A pays the loss what do you know about the company A CGL verified answer It was occurrence triggered If you negligently injure another driver in the amount of 50 000 while driving with PAP liability insurance he could collect 50 000 on a UMBI claim against his own company What action can be taken against you verified answer His company will subrogate against you for 50 000 With property and casualty insurance insurance interest is the extent of your financial interest at the time of verified answer Loss Though it can be raised the standard deductible for an HO 3 is which of the following verified answer 250 In a personal lines policy the individuals allowed to alter coverage settle claims and pay the premium are known as the verified answer Name insured The coverage provided in part B medical payments of a personal auto policy does all of the following except verified answer Pay for minor injuries you negligently cause to other people while occupying their own auto If your house is insured for 100 000 then your homeowners policy automatically provides coverage for up to what amount on your personal property verified answer 50 000 Which of the following is true concerning excess liability policies and commercial umbrella policies verified answer Umbrella has a self insured retention an excess liability does not If you and your company disagree on the amount of damages cited in your uninsured motorists claim the conflict is initially resolved by which of the following verified answer Arbitration Which of the following can be covered by a dwelling policy verified answer Rowboat An endorsement to the commercial package policy that modifies several of the coverage part is known as which of the following verified answer Inter line Endorsement The fire department service charge addition to building and business personal property coverage will pay up to which of the following amounts verified answer 1 000 The commercial property earthquake endorsement will treat all losses with a hour period as a single occurrence verified answer 168 hours Which of the following is true concerning coverages E and F of the homeowners policy verified answer Coverages E and F are identical on all six homeowners policies Risk is best defined as which of the following verified answer Chance of loss Under homeowners coverage C what is the dollar limit on losses in money gold or silver verified answer 200 Products liability cases are based upon the legal theory of verified answer Strict liability In a commercial lines policy the individuals allowed to alter coverage settle claims and pay premiums are knows as the verified answer First name insured The minimum deductible in the regular flood insurance program is which of the following verified answer 1 000 Choosing a substantial deductible is a method of risk verified answer Retaining risk If you own a 100 000 building and business personal property coverage and suffer a loss which is determined to be a 95 000 building loss and a 10 000 debris removal how much will the company pay verified answer 105 000 If a thief steals your car and wrecks it how will the claim be paid verified answer Other than collision coverage pays the entire claim You purchase your business insurance on a calendar year basis Even though your 10 000 premium is pre paid through December 31 you decide to cancel on July 1 because you are selling your business If you are due a pro data refund you should receive which of the following verified answer 5 000 A man gains access to your office through and unlocked door and takes insured property The commercial crime policy recognizes this loss as a verified answer Theft To see which vehicles are covered under a business auto policy you