Personal Lines Insurance PA Exams Practice 2024-2025 Guide, Exams of Credit and Risk Management

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Personal Lines Insurance PA Exams Practice 2024-2025 Guide

Personal Lines Insurance PA Exams Practice 2024-2025 Guide What are the penalties for violating the Fair Credit Reporting Act? - CORRECT ANSWERss 000. Imprisonment. for 1 year or both How long to give notice Lo client about eredil report? - CORRECT ANSWER days after report is requested TRIPRA defines terrorism as... - CORRECT ANSWER -A violent act or an act that is dangerous to human life, property or infrastructure that results in damage in or outside the US committed by domestic or foreign terrorists. TRIPRA Regulations - GORREGTMNGWER. Triccering event to go into effect $200 million Insurance carrier's deductible set at 20% of last years direct earned premium Federal share of compensation 80% Gramm-Leach-Bliley Act - GORRECTINSWER + ccuircs financial institutions to ensure the security and confidentiality of customer data Consumer - GGRRECTINGWER Anyone about whom information is collected. customer - GGRRECTENGWER someone who has an ongoing relationship with a financial institution. Fraud and false statements penalties - CORRECT ANSWER -3 fine, imprisonment for up to 10 years or both or imprisonment for up to 15 years if false statements jeopardize insurer. Scheduled Coverage - GGRRECTENSWER Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item. Blanket Coverage - GGRRECTANGWERL one price to cover all as opposed to specific veri] - SGRRBGRENSWER cause of loss Basic Perils - GGRRECTANGWER Fire. lightning, and internal explosion extended coverage Perils - GORRECTENGWER Wind, Civil Commotion, Smoke, Hail, Aircraft, Vehicles, Volcanoes, Explosion, Riot, Vandalism and Malicious Mischief (WC SHAVVER and V@MM) Broad Perils - (GRRBOMANSWER Big A floct Broad Poril Exclusions - CORRECT ANSWER -- Weight of ice, snow, ar falling objecis on awnings, fences, patios, swimming pools, docks, and retaining walls - Accidental discharge over walter from continuous leaking - Flooding from river or lake - Burglary if property vacant more than 60 conseculive days Class 5 - Modified Fire Resistive - SGRRECTANGWER Buildings that are modified fire resistive have exterior walls, floors and roof constructed of masonry or fire resistive material with a fire resistance rating of two hours or less. Class 6 - Fire Resistive - GGRRECTANGWER These structures are constructed of masonry or fire resistive material with a firc resistance raling of 2 hours or morc Actual Cash Value - GGRRECTIINGWER replacement cost minus depreciation Repair Cost - GORRECTENGWER The cost to repair a damaged or destroyed item of property Functional Replacement Cost. - SGRRECTAINGWER-The cost to replace damaged properly wilh less expensive and more modern construction or equipment. Agreed Value - CORRECT ANSWER -A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written. stated value - SGRRECTAINGWERL Allows insured to determine value of property Pair or set condition - GGRRECTANGWER When part of a set is damaged or destroyed, insured will not be reimbursed for the value of the entire set, only for the part that is damaged or destroyed Coinsurance - CORRECT ANSWER -3 provision under which both the insured and the insurer share the covered losses tort - SGRREGHANSWER* civil wrone to establish negligence - GGRREGTEINGWERL ecal Duty Owed Breach of Legal Duty Owed Proximate Cause Damages Contributory Negligence - CORRECT ANSWER -A rule in tort law, used in only a few states, that completely bars the plaintiff from recovering any damages if the damage suffered is partly the plaintiff's own fault. Comparative Negligence - CORRECT ANSWER -A rule in tort law, used in the majority of stalos, lhat reduces the plaintiff’s recovery in proportion Lo the plaintill’s degree of fault, rather than barring recovery completely. Last Clear Chance Doctrine - GORREGTENGWER allows the plaintiff to recover damages despite proof of contributory negligence as long as the defendant had a final clear opportunity to avoid the action that injured the plaintiff Absoluic/Stricl. Liability - GGRRECTANGSWER. liability wilhoul negligence Vicarious Liability - GORRECTENGWER 1 ecal responsibility placed on one person for the acts of another. Compensatory Damages - CORRECT ANSWER -A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party. DP Coverage B - GGRRECTINGWER other Structures DP Coverage C - GGRRECTANGWER personal property DP Coverage D - SGRRECTAINGWER-F ir Rental Value (20% of insurance on dwelling is available for this) DP Coverage E - GGRRECTIINGWER. Additional Living Expenses for DP2 & DP3 (10% of coverage A) DP-1 Other Coverages - GGRRECTANGWER Debris Removal Other Structures (10% of coverage A) Property Removed Reasonable Repairs Improvements, Alterations, Additions (10% of coverage C) Fire Department Service Charge (S300) Worldwide Coverage (10% of coverage C) Rental Value (20% of coverage A) DP-2 and DP-3 other coverages - CORRECT ANSWER -All included in DP-1 Trees, Shrubs and Other Plants (5% of coverage A, max of $500 each) Collapse Glass or safety glazing material Ordinance or law (10% of coverage A) DP-1 Basic Form - CORRECT ANSWER Can be written for any amount on a ACV basis. Covers basic fire, lightening and internal explosion. Other Perils must be endorsed. DP-2 and DP-3 - GGRRBCTAINGWER Replacement cost value as long as 80% or more Extended Coverage Endorsement - CORRECT ANSWER -An endorsement which extends the fire policy to cover loss by windstorm, ha: plosion, riot, attending strike, civil commotion, aircraft, vehicles and smoke. DP-2 Broad Form - (@RRE@RENSWER-DP-1 perils, EC perils. and VMM -Damage by Burglars Falling objcels -Weight of ice, snow, or sleet -Accidental discharge or overflow of waler or stcam -Sudden and accidental tearing apart, cracking, burning, or bulging Freezing -Sudden and accidental damage from artificially generated electrical current DP-3 Special Form - CORRECT ANSWER -An all risk policy (on the structure coverage only), in which anything nol exclided is covered. Contents Gf covered) are still named peril, as in the DP-2. Includes all DP-1 and DP-2 coverage. home owners insurance - GGRREGTEINGWER Provides payment to cover liability lasses as woll as damnage and loss of the home structure and its contents HO- Coverage B - GGRRECTANGWER. Other Structures Excluded if used for business or if rented to non-tenants HO- Coverage c- SGRRECTANSWER versonal property Property away from residence 10% of Coverage C or limit of $1000 HO Coverage D- CORRECT ANSWER -Loss of use Scheduled Personal Properly Endorsement - GGRRECTIANGSWEN Homeowner's policy endorsement that provides open peril, scheduled coverage for 9 optional classes of property personal property replacement cost Endorsement - GGRRECTIAINGSWER Reimburses losses to personal property at replacement cost value Permitted Incidental Occupancies Endorsement - SGRRECTANSWERHomeow: ners policy endorsement thal. covers the insured’s business activilics conducted on Lhe residence promises. Earthquake Endorsement - GGRRECTANGSWER © overs direct physical loss to property covered under Section I caused by an earthquake et or Dry Rot, or Bacteria Coverage Endorsement - CORRECT ANSWER. adds coverage to property sections of policy for damage arising due to fungi, ith HO3 and HOS Limited Fungi, t or dry rot, or bacteria. Only used v Home Day Care Coverage Endorsement - GGRRECTENGWER Homeowners policy endorsement that provides coverage for home day care businesses. HO Coverage E - GORRECTANGSWER versonal liability HO Coverage F - GGRRECTAINGWER Medical Payments to Others HO - watercraft included - GORRECTENGWER 51.500 Watercraft Endorsement - GORRECTANGWER Homeowner's policy endorsement that provides coverages for BI or PD arising out of the use of watercraft Business Pursuits Endorsement - SGRRECTINGWER Homeowners Policy endorsement that provides liability coverage for a business conducted away from the residence premises. Personal Injury Endorsement. - CORRECT ANSWER -C “overs insured for personal injury claims (hurt [cclings) Permitted Incidental Occupancies Endorsement - SGRRECTINGWER Homeowners policy endorsement that covers the insured’s business activities conducted on the residence premises. Personal Auto Policy (PAP) - CORRECT ANSWER -An insurance policy that covers an individual or a family against loss exposures arising out of the ownership, maintenance, or use of automobiles. Who Is an insured in PAP? - GGRREGTMNGWER Resident Family members Someone using the vehicle with owners permission financial responsibility law - SGRRECTNGWER state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident Out of State Coverage - GGRREGTENGWER Policy automatically provides coverage for states with higher or mandatory coverages when driving in that state Insureds for medical Payments - GGRREGTENGWER. Tre Named insured and any family members while occupying the car Any other person occupying the insureds car Other Insurance - CORRECT ANSWER -3 provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk Subrogation - CORRECT ANSWER -The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any parly (other than the insured) who caused the loss or is otherwise legally liable for the loss. Newly Acquired Auto - CORRECT ANSWER -In personal auto insurance, an auto that meets a policy’s eligibility requirements but is acquired after the effective date of the policy. Covered for 14 days transportation expenses - CORRECT ANSWER -$20 aday with maximum of $600 for use ofa car when the insured has becn in an accident No Benefit to Bailee Condition - GGRREGTENGIWER states that the bailee is not covered under the insured’s policy while the bailee has possession of the insured’s property Joint Ownership Coverage - GORREGTENGWER. Allows the policy to be issued to two or more persons who live in the same household or are related in another way besides husband and wile. Towing and Labor Coverage - CORRECT ANSWER -Cov orage for nece: labor costs (for labor performed at the place of disablement) due to the disablement of a ssary Lowing and covered private passenger auto. miscellaneous-type vehicle endorsement - SGRRECTAISWER-can be added to the PAP to insure motoreycles, mopeds, motor scooters, golf carts, motor hor buggies, etc. Extended Non-owned Coverage - CORRECT ANSWER -P.A? endorsement that eliminates most exclusions applicable to autos that are furnished or available for the regular use of the named insured or family members. Named non-owner coverage - GGRRECTINGWER Provides coverage for the use of non-owned autos Lo individuals who do not own a car. Liability coverage limils PA - CORRECT ANSWER -1F 5/30/5 medical payments coverage limits for PA - SGRRECTIANGWER $5,000 the insurer must notify insured with an explanation if an investigation cant be completed within 30 days Notice of cancellation given Binders for temporary fire (up to) 10 Days - SGRRECTAINGWER. Time a commissioner has to notify of hearing Insurers must acknowledge receipt of claim $5,000 - GGRRECTENGWER Viaximum producer fine per violation of insurance code Civil penalties for unfair competition, act or practice per violation for willful violations civil penalties of insurance fraud First violation Minimum liability coverage limits for property damage Medical payments minimum limit $1,000 - SRRESTANSTER violation for non-willful violations Civil penalties for unfair competition, act or practice per $10,000 - CORRECT ANSWER -Civil penalties for unfair competition, act or practice aggregate for non-willful violations of insurance fraud Second violation Pennsylvania property and casualty insurance guaranty association maximum payment for the return of premium $50,000 - CORRECT ANSWER -Civil penalties for unfair competition, act or practice aggregate for willful violations 3 Years - SGRRECTIAINGWER the commissioner must conduct an examination of e insurer at least once every 5 years $15,000 - CORRECT ANSWER -civil penallics of insurance [rand subsequent violations alia Bodily injury lability minimum limits 15 Days - SGRRECTAIGWER Insurers must respond to an inquiry from the insurance department with in working days Notice of cancellation or non-renewal due to non-payment of premium nLalion. Nolice of cancellation or non-rcnewal due to material misrepre