Podcast
Questions and Answers
What course of action does a party to a contract have if the other party is found to be in breach of that contract?
What course of action does a party to a contract have if the other party is found to be in breach of that contract?
Damages for breach, reasonable attorney fees, and costs.
A representation in an insurance contract qualifies as which of the following?
A representation in an insurance contract qualifies as which of the following?
What does it mean if an agent's insurance license is inactive?
What does it mean if an agent's insurance license is inactive?
The agent cannot transact any insurance business for which a valid active license is required.
In the state of CA, no rate will remain in effect if it is considered to be any of the following except:
In the state of CA, no rate will remain in effect if it is considered to be any of the following except:
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The amount paid for damage to property which is equal to the price for which it could have been sold is:
The amount paid for damage to property which is equal to the price for which it could have been sold is:
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The limited Mexico endorsement applies to trips to Mexico with a duration of:
The limited Mexico endorsement applies to trips to Mexico with a duration of:
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Which of the following types of coverage would pay for losses which occurred during the policy period and are found for up to one year after policy termination?
Which of the following types of coverage would pay for losses which occurred during the policy period and are found for up to one year after policy termination?
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If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident?
If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident?
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It is a violation of the CA insurance code to act as a producer for a non-admitted carrier unless:
It is a violation of the CA insurance code to act as a producer for a non-admitted carrier unless:
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In CA, excess and surplus lines coverage needs to be placed through:
In CA, excess and surplus lines coverage needs to be placed through:
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Mitchell's unendorsed personal auto policy liability coverage would pay for:
Mitchell's unendorsed personal auto policy liability coverage would pay for:
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An umbrella policy provides what type of coverage?
An umbrella policy provides what type of coverage?
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What is it called when Carmen's negligent operation of her car injures members of the public, and her employer may be held liable?
What is it called when Carmen's negligent operation of her car injures members of the public, and her employer may be held liable?
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What coverage is available under the liability portion of an unendorsed personal auto policy if the named insured is operating a company car on a regular basis?
What coverage is available under the liability portion of an unendorsed personal auto policy if the named insured is operating a company car on a regular basis?
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A possibility of financial loss resulting from the ownership of property is known as:
A possibility of financial loss resulting from the ownership of property is known as:
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What is the limit for sound reproducing equipment under the coverage endorsement for excess sound reproducing equipment, audio, visual, and data electronics?
What is the limit for sound reproducing equipment under the coverage endorsement for excess sound reproducing equipment, audio, visual, and data electronics?
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Which of the following is a true statement about CAARP?
Which of the following is a true statement about CAARP?
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The amount to replace an insured's damaged property less depreciation is known as:
The amount to replace an insured's damaged property less depreciation is known as:
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What's the difference between the per occurrence limit in a split limits policy and the combined single limit?
What's the difference between the per occurrence limit in a split limits policy and the combined single limit?
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If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a personal auto policy?
If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a personal auto policy?
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What is the minimum discount percentage for the good driver discount?
What is the minimum discount percentage for the good driver discount?
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What is the primary difference between umbrella and excess liability policies?
What is the primary difference between umbrella and excess liability policies?
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The intentional relinquishment of a known right is:
The intentional relinquishment of a known right is:
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In the business of insurance, concealment is defined by all of the following statements except:
In the business of insurance, concealment is defined by all of the following statements except:
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All of the following are characteristics of an 'ideally insurable loss exposure' except:
All of the following are characteristics of an 'ideally insurable loss exposure' except:
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The personal auto policy territory limits include:
The personal auto policy territory limits include:
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The collision coverage of a personal auto policy covers:
The collision coverage of a personal auto policy covers:
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Study Notes
Contract Breach and Remedies
- A party in breach of contract may incur damages, reasonable attorney fees, and associated costs.
Insurance Contract Representation
- A representation in an insurance contract is classified as an implied warranty.
Inactive Insurance License
- An inactive insurance license means the agent is prohibited from engaging in any insurance transactions requiring an active license.
Rate Regulations in California
- In California, a rate can only be deemed ineffective if it is considered biased, not impartial.
Property Damage Valuation
- Market value refers to the price at which damaged property could have been sold.
Limited Mexico Endorsement
- The limited Mexico endorsement is applicable for trips to Mexico lasting ten days or less.
Policy Coverage Period
- "Loss sustained" coverage pays for losses occurring during the policy term that are reported within one year post-policy termination.
Insurance Policy Response in Accidents
- When borrowing a neighbor's vehicle, the neighbor's insurance policy is primary, while the driver's policy serves as excess coverage.
California Insurance Code Violation
- Acting as a producer for a non-admitted carrier without being a surplus lines broker violates the California insurance code.
Surplus Lines Coverage in California
- Excess and surplus lines coverage must be placed through a surplus lines broker in California.
Liability Coverage in Auto Policies
- An unendorsed personal auto policy would cover damage costs, such as repairing a neighbor's fence due to negligent operation.
Umbrella Policy Functionality
- An umbrella policy provides broader excess liability coverage over one or more primary insurance policies.
Vicarious Liability Explanation
- Employers may be held liable for employees' negligent actions under the principle of vicarious liability.
Company Car Liability Exclusion
- Under an unendorsed personal auto policy, liability coverage is excluded when the named insured uses a company car regularly.
Insurable Interest Definition
- Insurable interest refers to the potential for financial loss associated with property ownership.
Sound Reproducing Equipment Limit
- The coverage limit for sound reproducing equipment under the personal auto policy endorsement is $200.
CAARP Liability Minimums
- The California Automobile Assigned Risk Plan (CAARP) mandates a minimum liability of 15/30/5.
Actual Cash Value Calculation
- Actual cash value is determined by replacing damaged property and subtracting depreciation.
Policy Limits Comparison
- The per occurrence limit in split limits applies only to bodily injury claims, while the combined single limit covers all claims.
Rental Car Coverage
- When renting a car on vacation, the personal auto policy provides the broadest coverage for any vehicle listed in the declarations.
Good Driver Discount Requirement
- A minimum discount of twenty percent is required for the good driver discount in insurance policies.
Umbrella vs. Excess Liability Policies
- Umbrella policies cover a broader range of liability exposures compared to excess liability policies, which may only cover single lines.
Waiver Definition
- Waiver is defined as the intentional relinquishment of a known right.
Concealment in Insurance
- Concealment pertains to information that is not disclosed, but will not be deemed to have occurred if no inquiry is made.
Characteristics of Insurable Loss Exposure
- An ideally insurable loss exposure must not include catastrophic losses.
Personal Auto Policy Territory
- The territory limits of a personal auto policy extend to Montreal, Canada.
Collision Coverage Explanation
- Collision coverage in a personal auto policy applies to damages, such as hitting a tree fallen during a storm.
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Description
Test your knowledge with these flashcards designed for the Limited Lines Automobile exam. Each card covers critical concepts like contract breaches, representations in insurance, and the implications of an inactive insurance license. Perfect for exam preparation and review!
