Fire & Casualty Practice exam 3

Front

What course of action does a party to a contract have if the other party is found to be in a breach of that contract? Options: Nothing, unless the injured party can prove the damages are substantial; Reasonable attorney fees and costs only; Damages for breach, reasonable attorney fees and costs; Damages caused by the breach only

Back

Damages for breach, reasonable attorney fees and costs

Front

A representation in an insurance contract qualifies as which of the following?

Back

An implied warranty

Front

What does it mean if an agent’s license is inactive?

Back

The agent cannot transact any insurance business for which a valid active license is required.

Front

The ordinance or law exclusion found in property policies such as the commercial property and in Homeowner’s policy has the following effect:

Back

It excludes the part of the loss resulting from the enforcement of a building ordinance or law.

Front

Extra expense insurance covers: The extra expense that a business incurs to continue a business while damage to the premises are being restored.

Back

The extra expense that a business incurs to continue a business while damage to the premises are being restored.

Front

A plate glass/glass coverage form is needed by some insured’s. Which of the following statements about the coverages for the peril of glass breakage in commercial property for a “building and personal property” basic, broad and special causes of loss form is true?
- There is limited glass breakage coverage in both of the broad and special forms.
- There is limited glass breakage coverage in the basic form.
- No policy limits apply to glass breakage coverage in the special form, all named perils.
- There is no glass breakage coverage in the broad or special forms.

Back

There is limited glass breakage coverage in both of the broad and special forms.

Front

In the state of CA, no rate will remain effect if it is considered to be any of the following except: Impartial, Unfairly discriminatory, Excessive, Inadequate

Back

Impartial

Front

The amount paid for damages to property in which is equal to the price for which it could have sold is:

Back

Market value

Front

The limited Mexico endorsement applies to trips to Mexico with the duration of: 7 days or less, Loss sustained, Claims made, 14 days or less

Back

Loss sustained

Front

Which type of coverage pays for losses that occurred during the policy period and are found for up to one year after policy termination? Options: Occurrence, Loss sustained, Claims made, Discovery

Back

Loss sustained