NMPCIP - New Mexico Property and Casualty Insurance Producer

Question 1: An interstate railroad worker injured on the job cannot collect ordinary state workers compensation benefits, and instead must prove the railroad was negligent in order to recover damages under a specific federal law. Which of the following names that federal remedy?

the Jones Act

the Longshore and Harbor Workers Act

the Federal Employers Liability Act

the state workers compensation law

Question 2: A dockworker loading cargo onto a ship in navigable waters is injured while performing maritime employment duties on an adjoining pier, work that falls outside both ordinary state workers compensation and the remedy available to a ship's crew. Which federal law provides benefits to this dockworker?

the Longshore and Harbor Workers Act

the Jones Act

the Federal Employers Liability Act

the state workers compensation law

Question 3: A family owns a mid sized powerboat used for weekend recreation, and their homeowners policy provides only very limited liability coverage for that watercraft because of its size and horsepower. Which of the following policies is designed to provide broader physical damage and liability protection for this boat?

a personal umbrella policy alone

a mobile home policy

a boatowners policy

an identity theft policy

Question 4: A longtime factory worker develops a lung condition gradually over many years of breathing airborne particles that are a routine hazard of the manufacturing process at her job, rather than from any single sudden event. Which of the following best classifies this kind of workplace harm?

an accidental bodily injury

a preexisting personal condition

an intentional self inflicted injury

an occupational disease

Question 5: After a workers compensation policy expires, the insurer reviews the employer's actual payroll records and job classifications used during the year to compare them against the estimates on which the original premium was based. Which of the following names this end of term review?

a premium audit

an experience rating review

a loss control survey

a retrospective rating adjustment

Question 6: A construction firm submits a proposal on a large paving contract, and the bidding instructions require a bond ensuring the firm will sign the contract and furnish further bonds if the bid is accepted by the awarding agency. Which type of bond satisfies this requirement during the competitive bidding stage?

a maintenance bond

a payment bond

a bid bond

a performance bond

Question 7: An accounts payable clerk discovers that an outside party altered the payee name on several company checks before cashing them at a local bank, causing a financial loss. The crime policy provision responding to fraudulently signed or altered checks and similar instruments is best identified as which coverage?

burglary coverage

employee dishonesty coverage

money and securities coverage

forgery or alteration coverage

Question 8: A store manager, present in the store, is confronted at gunpoint and forced to open the safe and hand over the day's cash. This differs from a break-in that happens when no one is present and forcible entry leaves visible marks. Which term describes the confrontation loss?

robbery

burglary

embezzlement

extortion

Question 9: A family purchases a motor home they plan to drive to campgrounds several times a year and wants coverage for both physical damage to the vehicle and liability while it is being driven or parked at a campsite. Which type of policy is specifically designed for this kind of vehicle?

a personal auto policy only

a boatowners policy

a recreational vehicle policy

a mobile home policy

Question 10: A dog owner wants a policy that reimburses veterinary bills if her pet becomes seriously ill or is injured in an accident, rather than relying on her homeowners policy for that kind of expense. Which type of coverage is designed specifically for this purpose?

a homeowners policy endorsement

a personal articles floater

an identity theft policy

pet insurance

Question 11: An insurance producer forgets to submit a client's renewal application on time, causing a lapse in coverage that leaves the client without protection when a loss later occurs. Which type of professional liability coverage would respond to a claim alleging the producer's negligent mistake in performing professional duties?

errors and omissions coverage

directors and officers coverage

employment practices coverage

commercial general liability

Question 12: A warehouse employee cannot perform any work for several weeks while recovering from a covered injury, and his household depends on his regular paycheck to cover ordinary living expenses during that recovery. Which category of workers compensation benefits is designed to replace a portion of his lost wages?

medical benefits

disability income benefits

rehabilitation benefits

death benefits

Question 13: An underwriter assigns a manufacturing employer's clerical staff a different rate than its machine operators because each group faces a distinctly different level of hazard while performing its daily duties. Which rating concept does this practice of grouping workers by duties illustrate?

experience rating

premium audit

job or work classification

retrospective rating

Question 14: A crew member injured while working aboard a commercial fishing vessel wants to pursue a claim against the vessel owner, but ordinary state workers compensation does not apply to seamen in this maritime occupation. Which federal law allows this injured seaman to sue the employer for negligence?

the Federal Employers Liability Act

the Longshore and Harbor Workers Act

the exclusive remedy doctrine

the Jones Act

Question 15: An employer operating in a jurisdiction where only a single government run insurer may write workers compensation coverage cannot purchase that coverage from a private carrier no matter how competitive the private market might otherwise be. Which term describes this type of state fund arrangement?

a monopolistic state fund

a competitive state fund

an assigned risk plan

a reciprocal insurance exchange

Question 16: An employer based in one state sends a crew to perform a short project in a state not listed on its workers compensation declarations, and a claim arises there before the policy is endorsed to add that state. Which part of the policy extends protection to this unlisted state?

Part One statutory benefits coverage

Part Three other states insurance

Part Two employers liability coverage

the monopolistic state fund provision

Question 17: A business hires a worker who sets her own hours, supplies her own tools, works for several other clients at the same time, and is paid a flat fee per completed project rather than an hourly wage. Which classification does this working arrangement most strongly suggest?

a statutory employee

a leased employee

an independent contractor

a common law employee

Question 18: A bookkeeper at a small manufacturing firm quietly diverts company funds into a personal account over several months before the scheme is finally discovered. The firm's crime policy responds because it covers loss of money, securities, or other property caused by dishonest acts of employees. Which coverage applies?

forgery or alteration coverage

robbery coverage

computer fraud coverage

employee dishonesty coverage

Question 19: A rating bureau compares one employer's actual workers compensation losses over several recent years to the losses expected of similar employers in the same classification, then produces a single number the underwriter applies to adjust the manual premium. Which of the following names that number?

the experience modification factor

the loss development factor

the premium audit adjustment

the increased limits factor

Question 20: A jewelry owner wants coverage that follows valuable rings and necklaces wherever they are located, whether at home, in a hotel safe, or being worn while traveling abroad, rather than coverage tied to a fixed address. Which coverage is designed to insure scheduled personal property on this worldwide, floating basis?

a difference in conditions policy

a personal inland marine floater

a commercial package policy

a farm property policy

NMPCIP New Mexico Property and Casualty Insurance Producer - Set 5 - Part 1

Question 1: An interstate railroad worker injured on the job cannot collect ordinary state workers compensation benefits, and instead must prove the railroad was negligent in order to recover damages under a specific federal law. Which of the following names that federal remedy?

Question 4: A longtime factory worker develops a lung condition gradually over many years of breathing airborne particles that are a routine hazard of the manufacturing process at her job, rather than from any single sudden event. Which of the following best classifies this kind of workplace harm?

Question 5: After a workers compensation policy expires, the insurer reviews the employer's actual payroll records and job classifications used during the year to compare them against the estimates on which the original premium was based. Which of the following names this end of term review?

Question 8: A store manager, present in the store, is confronted at gunpoint and forced to open the safe and hand over the day's cash. This differs from a break-in that happens when no one is present and forcible entry leaves visible marks. Which term describes the confrontation loss?

Question 9: A family purchases a motor home they plan to drive to campgrounds several times a year and wants coverage for both physical damage to the vehicle and liability while it is being driven or parked at a campsite. Which type of policy is specifically designed for this kind of vehicle?

Question 10: A dog owner wants a policy that reimburses veterinary bills if her pet becomes seriously ill or is injured in an accident, rather than relying on her homeowners policy for that kind of expense. Which type of coverage is designed specifically for this purpose?

Question 16: An employer based in one state sends a crew to perform a short project in a state not listed on its workers compensation declarations, and a claim arises there before the policy is endorsed to add that state. Which part of the policy extends protection to this unlisted state?

Question 17: A business hires a worker who sets her own hours, supplies her own tools, works for several other clients at the same time, and is paid a flat fee per completed project rather than an hourly wage. Which classification does this working arrangement most strongly suggest?

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