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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</p> Signup and view all the answers

    Who is the insured party in this document?

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

    What is the total amount of the stamping fee?

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

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

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

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

    <p>Personal effects</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.</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</p> Signup and view all the answers

    What time does the Lender Loss Payable endorsement become effective?

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

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

    <p>America Honda Finance Corporation</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.</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.</p> Signup and view all the answers

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

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

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

    <p>PO Box 59376</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.</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.</p> Signup and view all the answers

    Which endorsement covers the locations applicable to the second policy?

    <p>All locations</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.</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</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</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</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</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.</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.</p> Signup and view all the answers

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

    <p>Loss caused by collision</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</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.</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.</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.</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.</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.</p> Signup and view all the answers

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

    <p>Flood</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.</p> Signup and view all the answers

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

    <p>72 hours</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.</p> Signup and view all the answers

    What defines 'wholesale value'?

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

    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.

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