Compliance Quiz #7 (5/29/14)

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| By Alison Anderson
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Alison Anderson
Community Contributor
Quizzes Created: 22 | Total Attempts: 3,055
Questions: 10 | Attempts: 96

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Compliance Quiz #7 (5/29/14) - Quiz

Questions and Answers
  • 1. 

    Where can you find a list of ineligible risks for a homeowners line 70?

    • A.

      Rules and Rates

    • B.

      Homeowner's Policy Jacket

    • C.

      Risk Management Policy

    • D.

      Ineligible Risks Database

    Correct Answer
    C. Risk Management Policy
    Explanation
    The correct answer is Risk Management Policy. This is because the risk management policy is specifically mentioned as a place where a list of ineligible risks for a homeowners line 70 can be found. The other options, such as Rules and Rates, Homeowner's Policy Jacket, and Ineligible Risks Database, are not mentioned as sources for this specific information.

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  • 2. 

    True or False: When declaring proof of prior auto insurance, you do not need to send in proof until you are solicited from RMBC. 

    • A.

      True; RMBC will solicit on the 1st and 15th of every month.

    • B.

      False; proof of prior auto insurance must be faxed in the same day you issue the policy.

    Correct Answer
    B. False; proof of prior auto insurance must be faxed in the same day you issue the policy.
    Explanation
    The correct answer is False. According to the statement, proof of prior auto insurance must be faxed in the same day you issue the policy. This means that you cannot wait until you are solicited from RMBC to send in the proof.

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  • 3. 

    How many days does an agent have to fax in Legal Trailing Documents before they are considered outstanding?

    • A.

      14 Days

    • B.

      The same day the Trailing Document is generated in the system

    • C.

      7 Days

    • D.

      180 Days

    Correct Answer
    C. 7 Days
    Explanation
    An agent has to fax in Legal Trailing Documents within 7 days before they are considered outstanding.

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  • 4. 

    What underlying Motorcycle Bodily Injury limits must a customer carry in order to qualify for a PUP?

    • A.

      250/500

    • B.

      300/300

    • C.

      100/300

    • D.

      50/100

    Correct Answer
    C. 100/300
    Explanation
    In order to qualify for a Personal Umbrella Policy (PUP), a customer must carry underlying Motorcycle Bodily Injury limits of 100/300. This means that the customer must have coverage of at least $100,000 for bodily injury per person and $300,000 for bodily injury per accident. This higher coverage is necessary to provide adequate protection in the event of a motorcycle accident where the customer is at fault and liable for the injuries of others involved.

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  • 5. 

    A Husband, Wife and the wife's mother all live in the same household and are all licensed drivers.  If the Husband and Wife are the owner's of all vehicles, can the wife's mother be left off the policy if she doesn't drive the vehicles?

    • A.

      No, all licensed drivers in the household must be listed on the policy

    • B.

      Yes, only drivers who drive the cars need to be listed on the policy

    • C.

      Yes, because the wife's mother does not own any of the vehicles

    • D.

      Yes, as long as the agent obtains a signed letter from the customer requesting it.

    Correct Answer
    A. No, all licensed drivers in the household must be listed on the policy
    Explanation
    All licensed drivers in the household must be listed on the policy because insurance policies typically require all licensed drivers in the household to be included to ensure that all potential drivers are covered in case of an accident. This is to prevent any potential liability issues and to ensure that the insurance company has accurate information about who may be driving the vehicles.

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  • 6. 

    True or False:  The RMBC will ownly pursue for ITV when the difference between the replacement cost on the policy and the inspector's replacement cost is 5% or greater.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true. According to the given information, the RMBC will only pursue ITV (Insurance to Value) when the difference between the replacement cost on the policy and the inspector's replacement cost is 5% or greater. This means that if the difference is less than 5%, the RMBC will not pursue ITV.

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  • 7. 

    If an agency is selected for a POSIS review they are in the bottom _____% of agents in the region.

    • A.

      10

    • B.

      5

    • C.

      1-2

    • D.

      2-3

    Correct Answer
    C. 1-2
    Explanation
    If an agency is selected for a POSIS review, it means that they are in the bottom 1-2% of agents in the region. This suggests that the agency is performing poorly compared to other agencies in the area. The review is likely conducted to identify the reasons for their low performance and to provide recommendations for improvement.

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  • 8. 

    Under our Standard Auto Line 10 policy, physical damage coverage cannot be written on:

    • A.

      Collector Vehicles

    • B.

      Vehicles with a salvage title

    • C.

      Vehicles over 30 years old

    • D.

      All of the above

    Correct Answer
    B. Vehicles with a salvage title
    Explanation
    Under the Standard Auto Line 10 policy, physical damage coverage cannot be written on vehicles with a salvage title. This means that if a vehicle has been deemed a salvage by an insurance company, meaning it has been damaged and the cost to repair it exceeds its value, it is not eligible for physical damage coverage under this policy.

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  • 9. 

    Which of the following would not qualify under our Line 70 homeowner's policy?

    • A.

      A home with 2 layers of shingles on the roof

    • B.

      A home with an unfenced pool

    • C.

      A home with a wood pile stacked in the yard

    • D.

      A and B

    • E.

      All of the above

    Correct Answer
    D. A and B
    Explanation
    A home with 2 layers of shingles on the roof and a home with an unfenced pool would not qualify under our Line 70 homeowner's policy.

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  • 10. 

    How often must an agent perform remittance?

    • A.

      Every day by close of business

    • B.

      Every Friday by close of business

    • C.

      Every time a payment is received

    • D.

      On the 15th of each month

    Correct Answer
    A. Every day by close of business
    Explanation
    The correct answer is "Every day by close of business". This means that the agent must perform remittance on a daily basis, by the end of the business day. This ensures that payments are processed and sent out in a timely manner, allowing for efficient financial transactions.

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