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?

<p>Blowout due to excessive wear on tires (C)</p> Signup and view all the answers

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

<p>Loss arising from collusion with creditors (D)</p> Signup and view all the answers

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

<p>$194,968.20 (B)</p> Signup and view all the answers

When does the coverage for this insurance policy begin?

<p>March 1, 2019 at 12:01 am (B)</p> Signup and view all the answers

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

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

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

<p>Texas Department of Insurance (D)</p> Signup and view all the answers

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

<p>$0.0400 (A)</p> Signup and view all the answers

What is the mailing address of the insured company?

<p>535 North Loop Fwy, Houston, Texas 77018 (A)</p> Signup and view all the answers

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

<p>It provides coverage that the state does not regulate. (C)</p> Signup and view all the answers

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

<p>1-800-829-8165 (A)</p> Signup and view all the answers

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

<p>800 Gessner, Ste 600, Houston, TX 77024 (D)</p> Signup and view all the answers

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

<p>The agent or the company (A)</p> Signup and view all the answers

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

<p>For informational purposes only (A)</p> Signup and view all the answers

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

<p>(512) 490-1007 (C)</p> Signup and view all the answers

Which of the following statements is NOT correct regarding disputes?

<p>The Texas Department of Insurance should be contacted first. (C)</p> Signup and view all the answers

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

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

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

<p>1-800-252-3439 (D)</p> Signup and view all the answers

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

<p>P.O. Box 149104, Austin, TX 78714-9104 (C)</p> Signup and view all the answers

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

<p>A vehicle provided for demonstration regardless of employment status (A)</p> Signup and view all the answers

What does 'diminution in value' imply?

<p>Perceived reduction in value post-damage and repair (D)</p> Signup and view all the answers

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

<p>Mudslides and landslides caused by earth movement (C)</p> Signup and view all the answers

How is 'economic loss' defined for Collision Coverage?

<p>Difference between selling price and wholesale value if repairs exceed 10% (B)</p> Signup and view all the answers

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

<p>Mileage increase from a recovered stolen vehicle (D)</p> Signup and view all the answers

What constitutes a 'false pretense' loss?

<p>Loss from voluntarily relinquishing a vehicle through deception (C)</p> Signup and view all the answers

What does the term 'covered auto' refer to?

<p>Any vehicle that is insured under a policy (B)</p> Signup and view all the answers

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

<p>Mudslide caused by heavy rain (A)</p> Signup and view all the answers

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

<p>Unauthorized use of a vehicle in lawful possession (D)</p> Signup and view all the answers

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

<p>Loss incurred due to fraud perpetrated by an employee (C)</p> Signup and view all the answers

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

<p>It must not have been damaged in a previous loss. (B)</p> Signup and view all the answers

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

<p>The equipment and accessories attached to the vehicle. (C)</p> 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?

<p>If fraudulent identification was used in the transaction. (B)</p> Signup and view all the answers

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

<p>It has been registered before. (B)</p> Signup and view all the answers

What distinguishes comprehensive coverage from collision loss?

<p>Comprehensive coverage applies to losses not due to collision. (D)</p> Signup and view all the answers

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

<p>It must have been used for purposes other than road testing. (D)</p> Signup and view all the answers

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

<p>It pays for any loss unless specifically limited or excluded. (C)</p> 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?

<p>Overhead expenses. (B)</p> Signup and view all the answers

Which statement about auction and dealer wholesale reports is true?

<p>They are used to establish a standard value in the absence of actual cost. (D)</p> Signup and view all the answers

Flashcards

Vehicle Inventory Program

A program by Houston Specialty Insurance Company for insuring vehicles.

Insured Company

American Speed, Inc dba Mancuso Harley-Davidson

Policy Number

HRP0001887-00

Coverage Begins

March 1, 2019 at 12:01 am standard time

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Coverage Ends

March 1, 2020 at 12:01 am standard time

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Total Premium & Taxes

$194,968.20

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Surplus Lines

$9,005.67; additional premium cost for insurance

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Oklahoma Specialty Insurance Company Phone Number

The toll-free phone number for Oklahoma Specialty Insurance Company is 1-800-829-8165. This number is for getting information or making a complaint.

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Oklahoma Specialty Insurance Company Address

800 Gessner, Ste 600, Houston, TX 77024

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Texas Department of Insurance Phone Number

The toll-free phone number for the Texas Department of Insurance is 1-800-252-3439.

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Texas Department of Insurance Address

P.O. Box 149104, Austin, TX 78714-9104

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Texas Department of Insurance Fax Number

(512) 490-1007

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Texas Department of Insurance Website

http://www.tdi.state.tx.us

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Insurance Complaint Handling

First, always contact the insurance company's agent or the company if a complaint exists, attempt to resolve the issue.

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Premium or Claim Dispute Procedure

Contact your agent or the insurance company first, and if not resolved, contact the Texas Department of Insurance.

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Notice Attachment to Policy

This particular notification is for general reference only and does not affect the policy's conditions.

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Email for Insurance Consumer Protection

[email protected]

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Insolvency Exclusion

We won't cover losses caused by a person or entity's bankruptcy or similar legal proceedings, including asset seizure for creditors.

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Employee Dishonesty Exclusion

We won't pay for losses caused by an employee's infidelity or dishonesty.

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Collusion Exclusion

We won't pay for losses if there's collusion between you and the person causing the loss.

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Expected Profit Exclusion

We won't cover the profit you expected to make on the vehicle.

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Loss of Use Exclusion

We won't pay for the inability to use a covered vehicle due to damage.

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Demonstrator

A covered auto used for temporary demonstration by individuals or entities, regardless of employment status.

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Diminution in Value

The decrease in a covered auto's value after damage, either actual or perceived.

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Earthquake (definition)

Natural earth movements, including an earthquake, volcanic eruptions, or related events (landslides, sinkholes, etc.), or man-made induced earth movements (drilling, injecting fluids, etc.).

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Economic Loss (Collision)

Difference between a damaged car's selling price and its wholesale value (if repair costs exceed 10% of that value)

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Economic Loss (Comprehensive - Theft)

Reduction in value due to added mileage on a recovered stolen car if its selling price is less than its wholesale value.

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False Pretense

Loss from tricking someone into giving up ownership of a car.

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Covered Auto

A vehicle(auto) insured under a policy.

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Collision Coverage

Coverage for damage to a vehicle caused by a collision with another object.

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Comprehensive Coverage

Coverage for various incidents not covered under Collision ,such as theft, natural disasters.

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Wholesale value

The price a car dealer would pay for a car.

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Dealer Invoice Amount

The price of a new car or demonstrator before finance, insurance, advertising, and other fees are added.

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New Covered Auto

A new car that's part of an insurance policy.

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Total Theft Loss

A complete car theft.

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Forged Check

A check created illegally by changing or copying.

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Fraudulent Identification

Using fake documents or information to create an invalid transaction for a car.

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Actual Cost

The actual amount paid for a vehicle, excluding overhead or operational costs, and mileage.

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Odometer Reading

The number of miles a vehicle has traveled.

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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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