41. A producer who knowingly submits a false statement in support of a claim may be found guilty of

A. fraud.

B. coercion.

OC. illegal inducement.

misrepresentation.

42. In Michigan, a claim for occupational disease and death must be made within what period of time following discovery that the disease or death was work related?

OA 6 months.

OB. 2 years.

C. 5 years.

OD. 10 years.

43. After a tornado destroyed their building, a company had to rent another location to continue operations. The cost of renting the other location is classified as what type of loss?

OA. Direct

B. Indirect

OC. Casualty

D. Supplemental

44. The PRIMARY purpose of the Property and Casualty Guaranty Association is to

OA. provide an appeal process for denied claims.

OB. help reorganize insurers having financial difficulties.

OC. guarantee the payment of covered claims that exceed policy limits.

OD. make covered claim payments to policyholders of insolvent insurers.

45. Which accident would be covered by Section II of a homeowners policy?

OA. The insured's unsupervised son injures himself on a trampoline.

O B. The insured's dog bites the insured's spouse.

C.The insured' son accidentally hits a baseball and breaks the neighbor's window.

D. The dwelling burns when struck by lightning.

46. Which is an accurate statement regarding the spoilage coverage endorsement that can be added to a commercial property policy?

O A. Damage to perishable stock due to power outages is covered.

OB. Coverage is subject to coinsurance.

OC. Stock damaged by employee negligence is covered.

OD. Damage caused by theft.

47. Under the Liability section of a Homeowners Policy, which of the following would be covered under Additional Coverages?

OA. First aid expenses for the insured and the insured's family members.

OB. Damages to the insured's home if the damage was caused accidentally by the insured.

OC. Reasonable expenses incurred by the insured at the company's request in the investigation or defense of a claim.

D. Any judgment amount over and above the specified limit of liability included in the policy itself.

48. Which of the following endorsements require the insured to hire a security service with a guard that makes hourly rounds of the premises while the business is closed?

O A. Vandalism and Malicious Mischief Endorsement

OB. Utility Services Endorsement - Time Element

OC. Protective Safeguards Endorsement - P-3

OD. Utility Services Safeguard Endorsement

49. Which of the following commercial property endorsements allows an insured to pay premiums based on the actual monthly amount of inventory?

A. spoilage

OB. peak season

C. value reporting

OD.building ordinance

50. Liability for accidental damage to tangible property provides for benefits

OA. without regard to fault.

OB only to the individual who was not at fault.

OC. to the party who is not at fault less the amount of the state mini tort.

OD. to both parties but the deductible is waived for the party who is not at fault.

51. Under a personal automobile policy, medical payments coverage insures reasonable medical expenses sustained within

OA. 1 year of the date of the accident.

O.B. 2 years of the date of the accident.

OC. 3 years of the date of the accident.

OD. 4 years of the date of the accident.

52. The definition of business under a homeowners policy includes which of the following?

CA. The rendering of home daycare services to a relative of an insured.

B. Providing home daycare services for which no compensation is received.

C. A trade, profession, or occupation engaged in a full-time or part-time or occasional basis.

D. Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity.

53. A liability policy has a bodily injury limit of $50,000 and a property damage limit of $25,000. What type of limit does this policy have?

OA. Split

OB. Single

OC. Occurrence

OD. Aggregate

54. An insurance producer shall NOT act as an agent of an insurer until that producer has become

OA. an independent agent of that insurer.

OB. a verified agent of that insurer.

C. an appointed agent of that insurer.

D. a certified agent of that insurer.

55. Under an HO-3 Policy, the standard Coverage C - Personal Property limit for a one- or two-family dwelling is what percentage of Coverage A?

OA.25%

OB.50%

OC.75%

OD.100%

56. What is the standard deductible under the National Flood Insurance Program (NFIP) Emergency Program?

OA. $5,000

OB. $2,500

O.C. $1,000

OD. $500

57. When renting an apartment, which homeowners form is needed to protect liability?

OA. HO-2

OB. HO-3

O C. HO-4

OD. HO-6

58. The Jones Act is a federal law that allows members of ships' crews to sue for injuries caused by

O A. other people.

O B. passengers' negligence.

O C. the employer's negligence.

O D. the employee/other employees.

59. Anette just purchased a vehicle and financed it through her credit union. Which of the following does NOT have an insurable interest?

OA. The credit union.

O B. The owner of a vehicle.

C. The driver of a vehicle.

OD. The title holder of a vehicle.

60. The Homeowners Policy covers which of the following losses?

OA. Theft in a dwelling under construction.

O B. Vandalism, if a dwelling has been vacant for 20 days.

O C. loss caused by birds and domestic animals.

OD. Damage by flood.

61. When a sprinkler system is installed in a building, this is an example of

O A. loss transfer.

O B. risk avoidance.

O C. risk reduction.

OD. loss retention.

62. The type of construction that uses materials that can withstand fire for AT LEAST 2 hours is

OA. masonry.

OB. frame.

OC. fire-resistive.

OD. non-combustible.

63. Which of the following types of property are NOT covered under the businessowners policy?

O A. Personal property used to maintain buildings.

O B. Permanently installed machinery and equipment.

C. Completed additions.

OD. Outdoor fences.

64. Which of the following is an exclusion on the business owners policy (BOP) under the liability section?

OA. Liquor liability.

OB. Products liability.

OC. Personal injury liability.

OD. Advertising injury liability.

65. Which of the following is true about uninsured motorists coverage?

OA. It cancels and replaces underinsured motorists coverage.

OB. It is not mandatory coverage for all auto policies issued in the state.

O C. Additional UM coverage can exceed the liability limits on the same policy.

OD. One of the side benefits to this coverage is that it slightly expands personal injury protection.

66. Which of the following is insured under Coverage A - Dwelling in a homeowners policy?

OA. A structure unattached to a dwelling.

O C.Land on which a dwelling is located.

C. On-site materials used to repair a dwelling.

O D. Debris removal.

67. Which condition may void a homeowners policy?

O A. vandalism

O B. concealment

O C. unpaid premiums

OD. liberalization clause

68. In contract law, legal purpose refers to the fact that

O A. there must be consideration on the part of both parties.

O B. the parties entering into the contract must be competent.

O C. the reasons for entering into a contract must be legal.

OD. the contract must be personal.

69. All of the following offenses are included in personal and advertising injury coverage EXCEPT

O A. false imprisonment or arrest.

OB. malicious prosecution.

O C. legal eviction.

OD. wrongful entry.

70. Using their own vehicle for business, an employee ran a red light and hit another vehicle causing property damage and bodily injury to a third party. Under the hired auto and non owned liability endorsement, which of the following is a TRUE statement?

A.Both property damage and bodily injury will be covered to the third party.

OB. Only damage to the third party's vehicle will be covered.

O C. Only bodily injury will be covered.

OD. The claim will be denied.

71. The miscellaneous vehicle endorsement generally provides coverage for which of the following?

OA. motorcycle

OB. motorhome

O C. horse trailer

OD. four-wheel drive truck used for towing a camper

72. On a homeowners policy, who of the following is considered a named insured?

OA. The mortgagee identified on the declarations page.

OB. The person identified on the declarations page.

O C. A non-resident relative.

OD. A resident relative.

73. Under a Homeowners Policy, which of the following perils can be covered by endorsement?

O A. Corrosion.

O B. War.

O C. Earthquake.

OD. Inherent vice.

74. A contracted marketing firm asks the agency to provide their clients' policy numbers for use in a marketing campaign. According to the Michigan Insurance Code, what is the agency required to do about this request?

O A. fully comply with this legal request

O B. do not comply with this request as doing so is illegal

O C. gain permission from the Department before complying

O D. direct them to the insurance company for this information

75. How can a producer be protected from liability exposure arising from an inadvertent error or omission?

OA. Not offer or sell any legal liability coverage forms.

O B. Purchase and maintain professional liability insurance coverage.

O C.There is no way to be protected as all coverage forms include some form of legal liability.

OD. Offer only comprehensive coverage forms that specifically exclude coverage for the property of others.

76. Under a Homeowners Policy, coverage up to $500 is provided for the insured's legal obligation to pay losses in all of the following situations EXCEPT

O A. theft of a credit card.

OB. the dishonesty of an insured.

O C. forgery or alteration of the insured's check.

OD. the insured's acceptance in good faith of counterfeit money.

77. According to the conditions of a Personal Automobile Insurance Policy, what MUST the insured party do after a loss occurs?

O A. Ensure premiums are paid up to date.

O B. refrain from legal action without the insurer's approval.

O C. Permit the insurer to inspect the vehicle before it is repaired.

OD. Report the vehicle collision to the Department of Insurance and Financial Services.

78. An insured was reviewing the section of the policy that specifies the meaning of certain terms used. Which section of the policy was the insured reviewing?

O A. conditions

O B. declarations

O C. definitions

O D. exclusions

79. A person may bind coverage for insurance when the person selling the insurance is

O A. an unlicensed employee of an insurer and is paid commission directly related to the sale.

B. licensed as an insurance solicitor and is not paid commission.

O C. an unlicensed officer of an insurer and is paid commission directly related to the sale.

OD. licensed as an insurance producer and is paid commission.