Untitled Quiz
40 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the total premium and taxes for the insurance policy?

  • $194,968.20 (correct)
  • $185,684.00
  • $9,005.67
  • $278.53

When does the coverage for this insurance policy begin?

  • March 1, 2019 (correct)
  • 12:01 pm standard time
  • March 6, 2019
  • March 1, 2020

Which entity is the insurer providing this policy?

  • A surplus line insurer (correct)
  • A licensed insurer in Texas
  • A municipal insurance provider
  • A member of the property and casualty insurance guaranty association

What is the comprehensive rate per $100 of auto value?

<p>0.7050 (B)</p> Signup and view all the answers

Who is the insured party in this document?

<p>Mancuso Harley-Davidson (D)</p> Signup and view all the answers

What is the total amount of the stamping fee?

<p>$278.53 (C)</p> Signup and view all the answers

Which of the following situations would NOT qualify for coverage under this policy?

<p>A covered auto after it has been delivered to a customer (B), A rented auto used in a demolition contest (D)</p> Signup and view all the answers

What does the Texas Department of Insurance not do regarding surplus lines insurers?

<p>Audit the finances (A)</p> Signup and view all the answers

What type of equipment is excluded from coverage unless permanently installed in a covered auto?

<p>Police scanners (A), Portable audio systems (B), Radar detectors (C)</p> Signup and view all the answers

What property is explicitly excluded from being covered in a rented or leased auto?

<p>Personal effects (B)</p> Signup and view all the answers

Which of the following is true regarding inventory financing sources?

<p>Losses related to auto financing sources are excluded from coverage. (C)</p> Signup and view all the answers

For what duration does coverage apply to a covered auto temporarily replacing a customer's vehicle?

<p>Two months or less (A)</p> Signup and view all the answers

What time does the Lender Loss Payable endorsement become effective?

<p>12:01 A.M. local time (D)</p> Signup and view all the answers

Who is the Lender Loss Payable listed for the first policy?

<p>America Honda Finance Corporation (C)</p> Signup and view all the answers

What will happen if the policy is canceled by the insurer?

<p>Notice will be mailed to the Lender Loss Payee at least 10 days prior. (C)</p> Signup and view all the answers

Under what conditions will the Lender Loss Payee not receive notice if the policy is canceled?

<p>If the insured cancels the policy. (A)</p> Signup and view all the answers

Which city is associated with the first Lender Loss Payee endorsement?

<p>Southfield, Michigan (B)</p> Signup and view all the answers

What is the address for TCF Inventory Finance, Inc.?

<p>PO Box 59376 (B)</p> Signup and view all the answers

What will happen to claims under the policy?

<p>They will be payable jointly to the Named Insured and the Lender Loss Payee. (A)</p> Signup and view all the answers

What should the Lender Loss Payee do if they wish to change their address?

<p>Inform the insured to update the policy. (D)</p> Signup and view all the answers

Which endorsement covers the locations applicable to the second policy?

<p>All locations (C)</p> Signup and view all the answers

What is the criteria for a vehicle to be considered a new covered auto?

<p>It must not have been registered or titled. (D)</p> Signup and view all the answers

Which of the following is NOT considered part of the dealer invoice deductions for determining the value of a new covered auto?

<p>Vehicle mileage (C)</p> Signup and view all the answers

What is the maximum odometer reading for a vehicle to qualify as a new covered auto?

<p>7,500 miles (C)</p> Signup and view all the answers

What type of coverage does Comprehensive Coverage provide?

<p>Losses due to theft or other non-collision causes (B)</p> Signup and view all the answers

Which scenario qualifies for coverage under the Comprehensive Coverage clause?

<p>Loss due to theft using forged identification (A)</p> Signup and view all the answers

What is the definition of Wholesale Value for covered autos?

<p>The value based on auction and dealer reports. (C)</p> Signup and view all the answers

What criteria must be met for the vehicle to be considered as a demonstrator?

<p>It must have been used for test drives. (B)</p> Signup and view all the answers

Which of the following is excluded from coverage under Comprehensive Coverage?

<p>Loss caused by collision (B)</p> Signup and view all the answers

What should the actual cost exclude when determining the value for covered autos?

<p>Overhead expenses and wear and tear (C)</p> Signup and view all the answers

What does the term 'new' refer to in the context of automobiles?

<p>A vehicle of the current model year or the prior model year that has not been sold. (D)</p> Signup and view all the answers

How is 'occurrence' defined regarding losses from certain events?

<p>All losses arising during a continuous period of 72 hours for specified perils. (D)</p> Signup and view all the answers

What defines a 'total loss' for a covered auto?

<p>When the repair cost exceeds the vehicle's wholesale value plus salvage value. (D)</p> Signup and view all the answers

What does 'shop rental' refer to?

<p>A vehicle provided while another is being serviced, regardless of rental fee. (D)</p> Signup and view all the answers

What does 'weather limit' refer to?

<p>A predetermined amount specified in the Declarations or Evidence of Coverage. (D)</p> Signup and view all the answers

Which of the following is excluded from the definition of 'weather'?

<p>Flood (A)</p> Signup and view all the answers

What constitutes a 'total theft loss'?

<p>The theft of an entire vehicle or multiple vehicles, regardless of recovery. (D)</p> Signup and view all the answers

How long is considered 'one event' during continuous perils such as tornado or hurricane?

<p>72 hours (B)</p> Signup and view all the answers

In the context of a sale, what must occur for it to be considered completed?

<p>Transfer of title or execution of a financing agreement. (A)</p> Signup and view all the answers

What defines 'wholesale value'?

<p>The value assigned to a vehicle based on predetermined criteria. (B)</p> Signup and view all the answers

Flashcards

Vehicle Inventory Program

A program for insuring vehicles, likely involving multiple vehicles with standardized rates.

Insured

The party who holds the insurance policy and is covered by the insurance.

Policy Number

A unique identification number for a specific insurance policy.

Surplus Lines Coverage

Insurance coverage provided by an insurer not licensed in the state.

Signup and view all the flashcards

Comprehensive Rate

The rate charged for insurance coverage against damages not related to collisions.

Signup and view all the flashcards

Collision Rate

The rate charged for insurance coverage against damages from collisions.

Signup and view all the flashcards

Coverage Period

The time duration for which the insurance policy is valid.

Signup and view all the flashcards

Lender Loss Payee

The financial institution holding a lien on a vehicle, such as a lender or lienholder, who is entitled to be paid in case of loss or damage.

Signup and view all the flashcards

Effective Date

The date when an insurance policy or endorsement begins to cover risks.

Signup and view all the flashcards

Lienholder Endorsement

An amendment to an insurance policy that adds provisions specifically protecting the lender's or lienholder's interests in the vehicle.

Signup and view all the flashcards

Named Insured

The individual or entity directly covered by the insurance policy.

Signup and view all the flashcards

Cancellation Notice

A formal notification that an insurance policy may be terminated.

Signup and view all the flashcards

Insurance Policy

A legal agreement between an insurance company and a policyholder.

Signup and view all the flashcards

Joint Payment

Payment of insurance claim made simultaneously to two or more parties.

Signup and view all the flashcards

Loaned or Leased Vehicles

This exclusion applies to covered vehicles loaned, leased, or rented to others, but not to demonstrators or customer vehicles temporarily replacing their own.

Signup and view all the flashcards

Racing Exclusion

This exclusion applies to covered vehicles used in any professional or organized racing, acceleration, or stunt events.

Signup and view all the flashcards

Excluded Equipment

This exclusion includes items like tape decks, tapes, discs, and sound receiving equipment that are not permanently installed.

Signup and view all the flashcards

Inventory Financing Source

The policy won't cover losses to vehicles insured under your inventory financing source. This means you don't get double coverage.

Signup and view all the flashcards

Floor Plan Agreement

This exclusion applies to losses, deductibles, and exclusions related to the insurance provided in connection with your floor plan financing source.

Signup and view all the flashcards

New Auto

A vehicle that has never been sold, leased, registered, or titled and is either the current model year or the immediately prior model year.

Signup and view all the flashcards

One Event (Tornado, Hurricane, etc.)

All losses arising from a single event, including any combination of perils like tornado, windstorm, hail, and flood, occurring within a continuous 72-hour period.

Signup and view all the flashcards

One Event (Earthquake)

All losses arising from a single earthquake event, including any combination of earthquake and other comprehensive-general perils or flood, occurring within a continuous 168-hour period.

Signup and view all the flashcards

Sale/Sell/Sold (Covered Auto)

The completion of a transaction that includes the transfer of title or certificate of ownership, full payment, and execution of a financing or lease agreement.

Signup and view all the flashcards

Shop Rental

A covered auto provided to a customer whose vehicle is being serviced or repaired, or used in the business, but not as a demonstrator.

Signup and view all the flashcards

Total Loss

A loss where the repair cost plus salvage value exceeds the vehicle's wholesale value.

Signup and view all the flashcards

Total Theft Loss

The theft of an entire covered auto or multiple covered autos, whether recovered or not, excluding false pretense losses.

Signup and view all the flashcards

Weather Limit

The maximum amount of insurance coverage for weather-related damages as specified in the Declarations or Evidence of Coverage.

Signup and view all the flashcards

Weather Perils

All types of weather hazards including hail, windstorm, sandstorm, snow or ice weight, tornado, hurricane, tropical storm, depression, and rain, excluding flood and earthquake.

Signup and view all the flashcards

Wholesale Value

The estimated price a car would be sold for at a wholesale auction or to a dealer.

Signup and view all the flashcards

Actual Cash Value (ACV)

The fair market value of a vehicle at the time of a loss, taking into account depreciation and other factors.

Signup and view all the flashcards

Dealer Invoice

The price a dealer pays for a vehicle from the manufacturer, before adding markup and other expenses.

Signup and view all the flashcards

Model Changeover Credit

A discount offered by manufacturers when a new model year is released, reflecting the lower value of older models.

Signup and view all the flashcards

Comprehensive Coverage

Insurance coverage that pays for damage to your vehicle caused by anything other than a collision, like theft, vandalism, or natural disasters.

Signup and view all the flashcards

Collision Coverage

Insurance coverage that pays for damage to your vehicle caused by a collision with another vehicle or object.

Signup and view all the flashcards

Economic Loss

The financial loss incurred due to a total theft of a covered vehicle, calculated as the vehicle's actual cash value at the time of the loss.

Signup and view all the flashcards

False Pretense

A type of fraud where someone uses deceitful methods to obtain a covered car.

Signup and view all the flashcards

Demonstrator

A vehicle used by a dealer for test drives and promotional purposes.

Signup and view all the flashcards

Road Testing

Driving a vehicle for a short period to assess its performance and suitability.

Signup and view all the flashcards

Study Notes

Binding Confirmation Document Summary

  • Issue Date: March 6, 2019
  • Surplus Lines Agent: Risk Theory Insurance Services, License #: 2047652
  • Insured: American Speed, Inc dba Mancuso Harley-Davidson
  • Insurer(s): Houston Specialty Insurance Company
  • Policy #: HRP0001887-00
  • Originating Agency: TrueRisk Advisors, LLC
  • Policy Term: 3/1/2019 to 3/1/2020
  • Program: Risk Point Vehicle Inventory Program
  • Premium: $185,684.00
  • Brokerage Fee: $0.00
  • Stamping Fee: $278.53
  • Surplus Lines: $9,005.67
  • Total: $194,968.20
  • Surplus Lines Tax and Filing Fee: Responsibility of Risk Theory Insurance Services, LLC

Additional Insurance Information

  • Insured Location: 535 North Loop Fwy, Houston, Texas 77018
  • Producer Location: 13455 Noel Rd, Two Galleria Tower, Suite 2300, Dallas TX, 75240
  • Coverage Begins: March 1, 2019
  • Coverage Ends: March 1, 2020
  • Premium: $185,684
  • Stamping Fee: $278.53
  • Surplus Lines: $9,005.67
  • Total Premium & Taxes: $194,968.20
  • Comprehensive Rate per $100 of Auto Value: 0.7050
  • Collision Rate per $100 of Auto Value: 0.0400
  • Insurance Contract details: Issued and delivered as surplus line coverage under Texas Insurance statutes
  • No Audit or Solvency Review from the Texas Department of Insurance: The insurer is not a member of the property and casualty insurance guaranty association
  • Tax on Gross Premium: 4.85% (Insurance Code §981.101)
  • Surplus Lines Broker Responsibility: Broker handles surplus lines taxes and files.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Risk Point Policy PDF

More Like This

Untitled Quiz
6 questions

Untitled Quiz

AdoredHealing avatar
AdoredHealing
Untitled Quiz
55 questions

Untitled Quiz

StatuesquePrimrose avatar
StatuesquePrimrose
Untitled Quiz
50 questions

Untitled Quiz

JoyousSulfur avatar
JoyousSulfur
Untitled Quiz
48 questions

Untitled Quiz

StraightforwardStatueOfLiberty avatar
StraightforwardStatueOfLiberty
Use Quizgecko on...
Browser
Open
Browser
Browser