NMPCIP New Mexico Property and Casualty Insurance Producer - Set 5 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A shipping company insures the vessel itself against physical damage under one ocean marine policy and separately insures the goods being transported aboard that same vessel under a different marine policy. Which pair of terms correctly labels these two distinct ocean marine coverages purchased by the company?

cargo coverage and freight coverage

hull coverage and protection coverage

hull coverage and cargo coverage

freight coverage and indemnity coverage

Question 42: A homeowner living in an area prone to seismic activity discovers that her standard homeowners policy excludes ground shaking damage entirely, so any earthquake loss to her dwelling would otherwise go completely unpaid. Which of the following must she add to obtain that missing protection?

an increased homeowners liability limit

a personal articles floater

a boatowners policy

a separate earthquake policy or endorsement

Question 43: An umbrella policy is written to apply the same terms, conditions, and exclusions as the underlying general liability policy for scheduled claims, while also agreeing to pay defense costs for a covered suit in addition to, rather than eroding, its limit of liability. Which pairing of features does this describe?

follow-form terms with defense costs outside limits

claims-made terms with defense costs inside limits

occurrence terms with no defense obligation

manuscript terms with capped defense costs

Question 44: A worker injured on a construction site needs surgery, hospitalization, and follow up physical therapy before she can safely return to her regular job duties. Which category of workers compensation benefits covers the cost of this necessary treatment and care?

disability income benefits

medical benefits

death benefits

rehabilitation benefits

Question 45: A rancher's livestock escapes through a damaged fence and wanders onto a neighboring highway, causing a multi-vehicle collision, and the injured motorists sue the rancher for the resulting harm. Which portion of a farm insurance package is designed to respond to this third-party bodily injury claim arising from farming operations?

farm property coverage

livestock mortality coverage

farm liability coverage

crop hail coverage

Question 46: A retired couple owns a manufactured home permanently set on a rented lot in a mobile home community and needs coverage for the structure, their belongings, and liability arising from the property. Which type of policy is designed specifically for this kind of dwelling?

a standard homeowners policy

a boatowners policy

a recreational vehicle policy

a mobile home policy

Question 47: Part One of the workers compensation and employers liability policy responds whenever a covered worker suffers a job related injury or contracts an occupational disease, and a new adjuster wants to know exactly what that part promises to pay. Which of the following best describes what Part One provides?

whatever benefits the workers compensation law requires

a scheduled dollar limit per claim

damages awarded in a civil lawsuit

reimbursement only after the employer sues

Question 48: A freelance photographer carries expensive camera bodies and lenses to assignments in many different locations, and she wants coverage that follows the equipment worldwide against accidental damage and theft rather than being confined to a single described location. Which of the following best fits this need?

a homeowners policy without endorsement

a personal articles floater

a named location commercial policy

a boatowners policy

Question 49: An underwriter calculating a workers compensation premium multiplies a rate by a figure representing the total wages, salaries, and other compensation an employer expects to pay covered workers during the policy period. Which of the following is that figure commonly called?

the experience modification factor

the loss ratio

payroll or remuneration

the schedule rating credit

Question 50: A licensed tavern serves alcohol to a visibly intoxicated patron who later causes a car accident injuring a third party, and the injured party sues the tavern for contributing to the resulting harm. Which coverage is designed to protect the tavern against this specific type of claim?

general liability insurance

employment practices coverage

an umbrella policy alone

liquor liability insurance

Congratulations!

You have completed all 5 question sets. Good job!

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