Insurance Loss Coverage Quiz

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Questions and Answers

What circumstances under which loss would NOT be covered include the insolvency of a person or entity?

Injury caused to a bystander

Seizure of assets for the benefit of creditors (correct)

Natural disasters impacting the vehicle

Accidental damage caused during transport

Which of the following losses is explicitly excluded from coverage based on expected outcomes?

Loss of use of a covered auto (correct)

Theft of a covered auto

Fire damage to the engine

Physical damage to the vehicle

In what situation would economic loss coverage NOT apply to a covered auto?

If the vehicle is a shop rental (correct)

If the vehicle's market value decreases

If the vehicle is used for personal purposes

If the vehicle is damaged in an accident

Which scenario would lead to a loss that would NOT be paid for under the insurance?

Blowout due to excessive wear on tires Signup and view all the answers

What type of loss is NOT covered if it involves collusion between the insured and other parties?

Loss arising from collusion with creditors Signup and view all the answers

What is the total premium and taxes for the Vehicle Inventory Program?

$194,968.20 Signup and view all the answers

When does the coverage for this insurance policy begin?

March 1, 2019 at 12:01 am Signup and view all the answers

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

$0.7050 Signup and view all the answers

Which entity does not audit the finances of the surplus lines insurer?

Texas Department of Insurance Signup and view all the answers

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

$0.0400 Signup and view all the answers

What is the mailing address of the insured company?

535 North Loop Fwy, Houston, Texas 77018 Signup and view all the answers

What is the purpose of this insurance contract being categorized as surplus line coverage?

It provides coverage that the state does not regulate. Signup and view all the answers

What is the toll-free telephone number for contacting Oklahoma Specialty Insurance Company?

1-800-829-8165 Signup and view all the answers

Which address should you write to for inquiries related to Oklahoma Specialty Insurance?

800 Gessner, Ste 600, Houston, TX 77024 Signup and view all the answers

To whom should a dispute regarding premium or claims first be addressed?

The agent or the company Signup and view all the answers

What is the purpose of the notice mentioned in the content?

For informational purposes only Signup and view all the answers

What is the fax number for the Texas Department of Insurance?

(512) 490-1007 Signup and view all the answers

Which of the following statements is NOT correct regarding disputes?

The Texas Department of Insurance should be contacted first. Signup and view all the answers

What email address can be used to contact the Texas Department of Insurance for consumer protection?

<a href="mailto:[email protected]">[email protected]</a> Signup and view all the answers

Which of the following numbers connects you to information or complaints about the Texas Department of Insurance?

1-800-252-3439 Signup and view all the answers

What is the mailing address for the Texas Department of Insurance?

P.O. Box 149104, Austin, TX 78714-9104 Signup and view all the answers

What does 'demonstrator' refer to in the context of covered autos?

A vehicle provided for demonstration regardless of employment status Signup and view all the answers

What does 'diminution in value' imply?

Perceived reduction in value post-damage and repair Signup and view all the answers

Which of the following is included under the definition of 'earthquake'?

Mudslides and landslides caused by earth movement Signup and view all the answers

How is 'economic loss' defined for Collision Coverage?

Difference between selling price and wholesale value if repairs exceed 10% Signup and view all the answers

In Comprehensive Coverage, what does economic loss relate to specifically?

Mileage increase from a recovered stolen vehicle Signup and view all the answers

What constitutes a 'false pretense' loss?

Loss from voluntarily relinquishing a vehicle through deception Signup and view all the answers

What does the term 'covered auto' refer to?

Any vehicle that is insured under a policy Signup and view all the answers

Which of the following is not included in the definition of 'earth movement'?

Mudslide caused by heavy rain Signup and view all the answers

What does the term 'conversion' refer to in the context of covered autos?

Unauthorized use of a vehicle in lawful possession Signup and view all the answers

What can lead to a better understanding of the 'false pretense' exclusion?

Loss incurred due to fraud perpetrated by an employee Signup and view all the answers

What is a requirement for a new covered auto to qualify for the specified dealer invoice amount?

It must not have been damaged in a previous loss. Signup and view all the answers

What is one aspect that affects the value of other than a new covered auto?

The equipment and accessories attached to the vehicle. Signup and view all the answers

If a covered auto is lost due to false pretense, under what condition will the insurer pay for the loss?

If fraudulent identification was used in the transaction. Signup and view all the answers

What would disqualify a new demonstrator from being covered under the specified criteria?

It has been registered before. Signup and view all the answers

What distinguishes comprehensive coverage from collision loss?

Comprehensive coverage applies to losses not due to collision. Signup and view all the answers

Which of the following is NOT a condition for a new covered auto?

It must have been used for purposes other than road testing. Signup and view all the answers

Which of these options best describes the additional conditions attached to comprehensive coverage?

It pays for any loss unless specifically limited or excluded. Signup and view all the answers

What should be excluded from the actual cost when determining the value for other than a new covered auto?

Overhead expenses. Signup and view all the answers

Which statement about auction and dealer wholesale reports is true?

They are used to establish a standard value in the absence of actual cost. Signup and view all the answers

Study Notes

Binding Confirmation

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
Coverage(s): 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

Risk Theory Insurance Services, LLC is responsible for surplus lines tax and filings.

Additional Information

Insured Address: 535 North Loop Fwy, Houston, Texas 77018
Producer Address: 13455 Noel Rd, Two Galleria Tower, Suite 2300, Dallas TX, 75240

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Description

Test your knowledge on various circumstances where loss coverage may not apply in insurance policies. This quiz covers exclusions based on insolvency, expected outcomes, economic loss scenarios, and collusion. Understanding these exclusions is crucial for effective insurance management.