Ohio Property & Casualty Insurance License, Practice Exams

In a surety bond, the party who is required to provide the bond and perform the obligation is the:

1. Obligee
2. Beneficiary
3. Principal ✓
4. Surety

Why: The principal is the party who must perform the obligation and is required to furnish the bond.

Under § 3901.21, the terms 'estimate,' 'statement,' 'representation,' 'misrepresentation,' and 'advertisement' are defined to include:

1. Only occurrences made by a licensed agent
2. Only occurrences disseminated through mass media
3. Both oral and written occurrences ✓
4. Only written occurrences filed with the superintendent

Why: Section 3901.21 provides that, as used in the section, those terms include oral or written occurrences.

Employee Benefits Liability (EBL) coverage protects an employer against:

1. Errors or omissions in the administration of the company's employee benefit programs ✓
2. Discrimination and harassment claims brought by job applicants and current employees alike
3. Bodily injury to an employee occurring in the course of employment
4. Liability for injuries caused by products the employer made and sold

Why: EBL covers negligent acts, errors, or omissions in administering employee benefit plans (e.g., failing to enroll an employee).

The CGL pollution exclusion generally bars coverage for:

1. Bodily injury and property damage arising from the discharge, dispersal, or release of pollutants ✓
2. Slander and libel spoken in the insured's advertising, which only a separate media liability policy will answer
3. Theft of an automobile from the insured's parking lot, an exposure that belongs on a commercial crime form
4. Every fire loss at the insured's own premises, no matter whether the fire was hostile or friendly in origin

Why: The pollution exclusion removes coverage for injury/damage from the release of pollutants, subject to limited exceptions.

Under § 3901.221, when must the person subject to the cease-and-desist order begin to comply with it?

1. Thirty days after the order is mailed
2. Immediately upon receipt of notice of the order ✓
3. After the hearing is concluded
4. Only after the final order confirming it issues

Why: Section 3901.221 provides that the person shall comply with the order immediately upon receipt of notice of the order.

The 'nationwide marine definition' establishes:

1. Which private passenger auto policies each state must honor when a covered auto is driven interstate
2. The types of risks that may properly be written as inland and ocean marine insurance ✓
3. The boundaries of the federal flood hazard zones that FEMA maps along coastal waterways
4. The minimum premium an insurer may charge before writing an ocean marine policy in a state

Why: The Nationwide Marine Definition outlines classes of risks that may properly be insured under marine (inland and ocean) policies, including imports, exports, domestic shipments, instrumentalities of transportation, and certain floaters.

A percentage-based permanent partial disability award under ORC 4123.57(A) is limited to a number of weeks equal to the percentage of how many weeks?

1. 100 weeks
2. 500 weeks
3. 150 weeks
4. 200 weeks ✓

Why: ORC 4123.57(A) pays 66 2/3% of AWW (capped at 33 1/3% of the SAWW) for the number of weeks equal to the percentage of 200 weeks.

A spouse of an injured worker sues the employer for loss of the worker's companionship and services resulting from the work injury. This is an example of which type of claim Part Two may cover?

1. Dual-capacity injury caused by the employer's product
2. Occupational disease claimed by a family member
3. Third-party-over action brought by a manufacturer
4. Consequential (related) bodily injury and loss of consortium ✓

Why: Part Two can cover consequential bodily injury and care/loss of services (loss of consortium) suits brought by family members related to the employee's work injury.

Under § 3901.26(D), no cease or desist order or judgment under that section may be entered until the expiration of how long from the filing of the affidavit of compliance?

1. Fifteen days
2. Thirty days ✓
3. Ten days
4. Ninety days

Why: Section 3901.26(D) provides that no cease or desist order or judgment shall be entered until the expiration of thirty days from the date of filing of the affidavit of compliance.

Which of the following is true about how WC indemnity benefits interact with maximum and minimum limits?

1. No statutory ceiling or floor applies; the weekly check is simply two-thirds of the worker's own average wage
2. Weekly benefits are subject to statutory maximums and minimums tied to the state average wage ✓
3. A statutory maximum caps the weekly benefit, but no minimum exists, so a low-wage worker receives whatever the percentage yields
4. The weekly benefit always equals one hundred percent of the worker's pre-injury wage until maximum medical improvement

Why: Indemnity benefits are generally a percentage of average weekly wage but capped by a statutory maximum and floored by a minimum, often tied to the statewide average weekly wage.

Under § 3901.213(D)(3), before launching such a value-added pilot program, the insurer must notify the superintendent, and may proceed unless the superintendent objects in writing within how many days of receiving notice?

1. Twenty-one days ✓
2. Thirty days
3. Ten days
4. Fifteen days

Why: Section 3901.213(D)(3)(b) provides the insurer must notify the superintendent before launching and may proceed unless the superintendent objects in writing within twenty-one days of receiving notice.

The principle that allows insurers to predict losses more accurately as the number of similar exposure units increases is the:

1. Principle of indemnity
2. Law of agency
3. Law of large numbers ✓
4. Doctrine of reasonable expectations

Why: The law of large numbers states that the larger the number of similar exposures, the more predictable actual loss experience becomes.

Theft coverage under the standard Dwelling Policy is:

1. Provided only for liability claims
2. Automatically included in all forms
3. Only available on DP-1
4. Not included unless added by endorsement ✓

Why: The Dwelling Policy does not include theft coverage by default; it must be added by a theft coverage endorsement.

Ohio's compulsory minimum auto liability limits are commonly stated in shorthand as which of the following?

1. 30/60/25
2. 50/100/50
3. 25/50/25 ✓
4. 20/40/15

Why: ORC §4509.51 sets $25,000/$50,000/$25,000 — the familiar 25/50/25 minimum.

Under ORC §3955.01, the maximum the Ohio Insurance Guaranty Association will pay on any one covered claim (other than unearned premium) is:

1. The full policy limit with no statutory cap
2. $100,000
3. $300,000 ✓
4. $500,000

Why: §3955.01(D)(2)(b) excludes from 'covered claim' any amount in excess of $300,000 on any claim.

A restaurant's walk-in freezer fails due to compressor breakdown, spoiling $8,000 of food. Which coverage best responds?

1. Business income coverage for the sales lost while the freezer was down
2. Spoilage endorsement (and/or equipment breakdown) ✓
3. Ordinance or Law coverage to rebuild the freezer to current code
4. Products liability of the compressor's maker

Why: Spoilage coverage (or equipment breakdown) addresses loss to perishable stock caused by refrigeration/equipment breakdown.

Medical benefits under most workers' compensation laws are generally:

1. Capped at a fixed dollar amount per claim set by the state legislature
2. Unlimited in amount and duration for the compensable injury ✓
3. Paid only for the first 30 days following the injury
4. Subject to a deductible the injured worker pays before treatment begins

Why: Medical benefits for a compensable injury are typically unlimited, covering reasonable and necessary treatment with no dollar cap and no cost to the employee.

Under ORC 4123.83, what must an Ohio employer post (or make accessible online) at its place of employment?

1. A copy of the employer's most recent federal payroll tax return, available on request
2. A notice, furnished by the BWC, serving as proof of workers' compensation coverage or self-insuring authorization ✓
3. A schedule listing every employee's job classification and hourly wage rate
4. A list of the names, resumes, and safety certifications of each safety officer the employer currently employs

Why: ORC 4123.83 requires the employer to post the BWC-furnished notice stating it is proof of coverage (or of authorization to self-insure), conspicuously or online, accessible to employees. This is the certificate-of-coverage concept.

A reciprocal insurer is best described as:

1. An insurer owned and operated by the federal government to write perils private carriers avoid
2. A corporation owned by its stockholders, who elect the board of directors and receive dividends
3. An unincorporated group of subscribers who insure one another, managed by an attorney-in-fact ✓
4. A foreign insurer that writes only surplus lines business through resident surplus lines brokers

Why: A reciprocal or interinsurance exchange is an unincorporated association of subscribers who exchange insurance among themselves, administered by an attorney-in-fact.

Per § 3901.19, a 'customer' is an individual who purchases, applies to purchase, or is solicited to purchase insurance products primarily for what purpose?

1. Commercial or business risk-management purposes
2. Personal, family, or household purposes ✓
3. Group or employer benefit purposes
4. Investment and wealth-accumulation purposes

Why: Section 3901.19(F) defines 'customer' as an individual who purchases, applies to purchase, or is solicited to purchase insurance products primarily for personal, family, or household purposes.

The CGL excludes bodily injury 'expected or intended from the standpoint of the insured.' This is the:

1. Expected or intended injury exclusion ✓
2. Pollution exclusion, which also removes expected or intended injury
3. Contractual liability exclusion
4. Employer's liability exclusion

Why: The expected or intended injury exclusion removes coverage for intentional harm, preserving the fortuity principle.

In a competitive state fund jurisdiction, the state fund:

1. Writes only Employers Liability, leaving benefits to carriers
2. Is the only lawful source of workers compensation coverage
3. Competes with private insurers as one option among many ✓
4. Is reserved for federal employees covered by the FECA program

Why: A competitive state fund operates alongside private insurers; employers may buy WC from the state fund or from private carriers.

Under ORC 4123.35, if a private employer's subcontractor fails to pay required premiums, who may be liable for that unpaid premium?

1. The BWC, which absorbs the shortfall from the surplus fund and issues no assessment
2. No one; the subcontractor's coverage simply lapses and its workers become uninsured
3. The contracting private employer, for payroll performed under the contract ✓
4. Only the subcontractor's owners, who are personally liable for the unpaid premium

Why: ORC 4123.35(A) makes a private employer who has contracted with a subcontractor liable for unpaid premium due from that subcontractor for work performed under the contract.

Under ORC §3937.31, does renewing a policy waive the insurer's right to cancel for grounds that existed before the renewal?

1. Only for nonpayment of premium; renewal waives every other pre-existing ground
2. No; renewal does not constitute a waiver or estoppel with respect to grounds for cancellation existing before the renewal's effective date ✓
3. Yes; issuing a renewal is an election to continue the policy and waives any ground for cancellation the insurer knew or should have known of before the renewal date
4. Only if the insured disclosed the grounds on the renewal application

Why: §3937.31(D) provides that renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of the renewal.

When an Ohio insurer declares it economically impractical to repair a vehicle and pays the owner an agreed total-loss price, what title must the insurer generally obtain?

1. A duplicate original certificate of title
2. A rebuilt-salvage certificate of title
3. A salvage certificate of title ✓
4. A memorandum certificate of title

Why: ORC §4505.11(C)(1) requires the insurer, after paying a total loss, to apply for a salvage certificate of title.

Medical Payments coverage typically pays expenses incurred within what time frame after the accident?

1. Within 30 days
2. Indefinitely with no limit
3. Within 1 year
4. Within 3 years ✓

Why: PAP Part B generally pays covered medical and funeral expenses incurred within three years of the date of the accident.

Under Ohio Rev. Code § 3905.14, the maximum civil penalty the superintendent may assess per violation is what amount?

1. Five thousand dollars
2. Twenty-five thousand dollars ✓
3. Ten thousand dollars
4. One hundred thousand dollars

Why: § 3905.14(E)(1) authorizes a civil penalty in an amount not exceeding twenty-five thousand dollars per violation.

Under ORC §3937.31, the cancellation and nonrenewal protections generally do NOT apply to a policy or coverage that has been in effect less than how long when the cancellation notice is mailed (unless it is a renewal policy)?

1. 60 days
2. 120 days
3. 30 days
4. 90 days ✓

Why: §3937.31(C) provides sections 3937.30 to 3937.39 do not apply to any policy or coverage in effect less than ninety days at the time notice of cancellation is mailed, unless it is a renewal policy.

Under § 3901.211(D)(1), a depository institution selling insurance must disclose to the customer, before the sale, that the insurance is NOT:

1. A deposit and is not insured by the FDIC or any other federal government agency ✓
2. Available from any other agent or agency, so that the customer understands the institution is the sole source
3. Renewable at the customer's option once the loan secured by the policy has been repaid in full
4. Subject to the thirty-day free-look period that section 3901.211 grants purchasers of bank-sold coverage

Why: Section 3901.211(D)(1) requires disclosure that the insurance is not a deposit, is not insured by the FDIC or any other federal government agency, is not guaranteed by the depository institution, and (where appropriate) involves investment risk including possible loss of value.

The policy section that defines the rights and duties of both parties, such as duties after a loss and cancellation, is the:

1. Insuring agreement
2. Declarations
3. Conditions ✓
4. Definitions

Why: The conditions section spells out the rules, rights, and duties governing how the policy operates for both insurer and insured.

Under § 3901.211(B)(10), when financing a residential mortgage, a lender may not require the borrower to purchase homeowners coverage in an amount that:

1. Equals the replacement value of the dwelling and its contents
2. Exceeds the replacement value of the dwelling and its contents ✓
3. Includes the fair market value of the land
4. Covers the borrower's personal liability

Why: Section 3901.211(B)(10) prohibits requiring property coverage exceeding the replacement value of the dwelling and its contents, and provides that the fair market value of the land shall not be included in that replacement value.

Electronic equipment such as a permanently installed aftermarket sound/navigation system not factory-installed is, under the unendorsed PAP, generally:

1. Subject to exclusion or limitation unless added by endorsement ✓
2. Paid under Part B medical payments rather than Part D physical damage
3. Covered in full under Part D, just like factory-installed equipment
4. Always replaced with a new unit of like kind

Why: The PAP limits or excludes certain non-factory permanently installed electronic equipment; broader coverage requires an endorsement.

As used in §§ 3905.14 to 3905.16, what does 'revocation' mean?

1. The superintendent's refusal to process a renewal application until the agent's continuing education is completed
2. A temporary halt to selling under a single line of authority, leaving the agent's remaining lines in force
3. The permanent termination of all authority to hold any license as an agent in this state ✓
4. A voluntary surrender of one appointment

Why: § 3905.14(A)(3) defines 'revocation' as the permanent termination of all authority to hold any agent license in this state.

Under ORC §3937.18, which describes an 'uninsured motorist'?

1. An owner/operator with no bodily-injury liability bond or policy, or whose insurer denies coverage or is insolvent ✓
2. Any driver whose bodily-injury liability limits are lower than the limits of the claimant's own uninsured motorist coverage
3. Any driver licensed outside Ohio whose policy was written in another state
4. Only a hit-and-run driver who leaves the scene and is never identified

Why: ORC §3937.18(B)(1) defines an uninsured motorist to include an owner/operator with no BI bond or policy, or whose insurer denies coverage or becomes insolvent, among other conditions.

Under ORC §3955.01, which of the following is expressly excluded from the definition of a 'covered claim'?

1. Claims arising within 30 days after the insolvency determination
2. Amounts awarded as punitive or exemplary damages ✓
3. Unpaid first-party property damage claims of Ohio residents
4. Unearned premium up to $10,000

Why: §3955.01(D)(2)(d) excludes any amount awarded as punitive or exemplary damages from a covered claim.

Unlike Part One, Part Two (Employers Liability) of the policy does include limits of liability. The three Part Two limits typically apply to:

1. Medical benefits, wage-replacement indemnity benefits, and death benefits payable to the worker's surviving dependents
2. Temporary disability benefits, permanent disability benefits, and survivor benefits, each shown as a separate dollar amount
3. A per-claim limit, a per-occurrence limit, and an annual aggregate limit applied to the worker's medical payments
4. Bodily injury by accident, bodily injury by disease per employee, and bodily injury by disease policy limit ✓

Why: Part Two shows three limits: bodily injury by accident (each accident), bodily injury by disease (policy limit), and bodily injury by disease (each employee).

An Ohio worker suffers serious facial disfigurement that may impair future employment. Under ORC 4123.57(B), the maximum award for such disfigurement is:

1. $10,000 ✓
2. $5,000
3. $25,000
4. There is no cap

Why: ORC 4123.57(B) allows the administrator to make an equitable disfigurement award not to exceed $10,000 for serious facial or head disfigurement.

At least how far in advance must the superintendent send a renewal notice to a resident agent licensee?

1. No advance notice is required by statute
2. At least one month prior to the renewal date ✓
3. At least one week before the renewal date
4. At least 90 days before the renewal date

Why: § 3905.06(C)(1) states the superintendent shall send a renewal notice at least one month prior to the renewal date.

Because WC premium depends on actual payroll, which the insurer estimates at the start of the term, what process is performed after the policy period to determine final premium?

1. An experience modification
2. A residual market assignment
3. A premium audit ✓
4. A loss reserve study

Why: A premium audit reviews the insured's actual payroll records after the policy period so the final premium can be adjusted up or down from the estimate.

Under a Homeowners policy, loss to a covered building caused by freezing of plumbing is generally covered only if the insured:

1. Used reasonable care to maintain heat or shut off and drained the water ✓
2. Reported the burst pipe to the insurer within 24 hours of discovering the water
3. Lives in a climate where freezing is uncommon
4. Has paid the extra premium for a freezing endorsement

Why: Freezing losses are covered only if the insured maintained heat in the building or shut off the water supply and drained the systems; otherwise the loss is excluded.

The National Flood Insurance Program (NFIP) is administered by which federal agency?

1. The U.S. Department of Agriculture
2. The Department of Housing and Urban Development
3. The Small Business Administration
4. The Federal Emergency Management Agency (FEMA) ✓

Why: The NFIP is administered by FEMA, an agency within the Department of Homeland Security.

A stock insurer is owned by its:

1. Stockholders ✓
2. State insurance department
3. Policyholders
4. Board of agents

Why: A stock insurer is owned by stockholders, who supply capital and receive dividends; policyholders are not owners.

The Ohio state insurance fund for workers' compensation is administered by which entity?

1. The Bureau of Workers' Compensation (BWC) ✓
2. The Ohio Department of Insurance
3. The Ohio Attorney General's office
4. The Industrial Commission of Ohio

Why: Under ORC 4123.35 the administrator of workers' compensation (the BWC) fixes premiums and administers the state insurance fund into which employers pay.

If a covered Ohio employee dies from a work injury leaving NO dependents, ORC 4123.59 limits state-fund disbursement to:

1. Full weekly benefits at 66 2/3% of the average weekly wage, payable to the estate for 500 weeks
2. A flat statutory death benefit of $25,000 paid into the decedent's probate estate
3. Nothing at all, including burial costs
4. Only the expenses provided in ORC 4123.66 (e.g., funeral/burial and medical) ✓

Why: ORC 4123.59(A) provides that with no dependents, disbursement is limited to the expenses in ORC 4123.66 (funeral and related expenses).

The Motor Carrier Coverage Form is most appropriate for:

1. An individual insuring the family sedan for commuting
2. A business that transports goods or people for hire (trucking) ✓
3. A homeowner adding coverage for a car kept in the garage
4. A motorcycle dealership that sells and services bikes

Why: The Motor Carrier Coverage Form is tailored for businesses that haul property or passengers for others, addressing trucking-specific exposures.

Which of the following losses is covered under "Other Than Collision" (comprehensive) rather than Collision?

1. Rolling the vehicle over in a ditch
2. Striking a guardrail
3. Damage from hail, fire, theft, or hitting a deer ✓
4. Colliding with another vehicle at an intersection

Why: Other Than Collision (comprehensive) covers losses such as fire, theft, hail, vandalism, glass breakage, and contact with animals like a deer.

Cyber/Network security liability insurance is designed primarily to address:

1. Fire and smoke damage to the insured's server room and its hardware, valued at replacement cost
2. Workplace injuries to employees who develop repetitive strain from long hours at their computer terminals
3. Auto liability arising when an employee drives a company car to a client's office to fix network security and causes a crash
4. Liability and expenses from data breaches, privacy violations, and network security failures ✓

Why: Cyber policies cover first- and third-party costs from data breaches, privacy claims, and network security incidents.

After how many days in effect does a new (non-renewal) Ohio auto policy become subject to the cancellation restrictions of §§3937.30–3937.39?

1. 90 days ✓
2. 120 days
3. 30 days
4. 60 days

Why: ORC §3937.31(C) provides the cancellation-restriction sections do not apply to a policy in effect less than ninety days at the time notice is mailed, unless it is a renewal policy.

An Ohio worker wants to sue her employer directly in tort despite the workers' compensation system. Under ORC 2745.01, what must she prove?

1. That the injury caused damages exceeding the dollar threshold the statute sets before an intentional-tort action may be filed against an employer
2. That the employer was negligent in failing to correct a workplace hazard it had known about for a substantial time before the injury
3. That the employer committed the tortious act with intent to injure or with the belief the injury was substantially certain to occur ✓
4. That the employer's safety violation had been reported to the bureau and cited by a state safety inspector before the injury occurred

Why: The intentional-tort exception in ORC 2745.01(A) requires proof the employer acted with intent to injure or with belief the injury was substantially certain to occur.

An 'impairment rating' in workers' compensation is used primarily to:

1. Decide which state's compensation law governs a multistate claim
2. Measure the degree of permanent loss of function for benefit determination ✓
3. Set the employer's premium classification code from its payroll
4. Calculate the experience modification factor applied to the employer's manual premium

Why: An impairment rating, often expressed as a percentage, measures the extent of permanent physical impairment and is used to determine permanent disability benefits.

Rates charged for basic property and homeowners insurance written through the Ohio FAIR plan are, under ORC §3929.43:

1. Fixed by statute and adjustable only by the legislature
2. Subject to the approval of the superintendent of insurance ✓
3. Set by each member insurer for its own share
4. Decided by a vote of the association's policyholders

Why: §3929.43(C) provides that rates for basic property and homeowners insurance shall be subject to the approval of the superintendent.

A driver with multiple at-fault accidents and DUIs is repeatedly declined by standard auto insurers. The mechanism most likely to provide required liability coverage is:

1. An automobile assigned-risk plan ✓
2. A FAIR Plan
3. A beach and windstorm plan
4. A risk retention group

Why: Drivers unable to obtain coverage voluntarily are placed through the automobile assigned-risk plan, the residual market for auto insurance.

Under the FCRA, when an insurer denies an application or charges a higher premium based on a consumer report, it must provide the consumer with:

1. A refund of every premium paid to date, with interest, within 30 days of the underwriting decision
2. A replacement policy issued at the originally quoted premium until the report is corrected
3. An adverse action notice including how to obtain a copy of the report ✓
4. A federal flood zone determination form

Why: The FCRA requires an adverse action notice that informs the consumer of the action, identifies the reporting agency, and explains the right to obtain a free copy of the report and dispute it.

A 'nonscheduled' (unscheduled) permanent partial disability typically involves:

1. An injury to a body part named on the statutory schedule, such as a thumb or a foot, paid at a fixed number of weeks regardless of actual wage loss
2. An injury compensable only under Part Two, Employers Liability, because the statute schedules no benefit for that body part
3. An injury that resolves before maximum medical improvement is reached, so benefits end when the worker is released to full duty
4. An injury to the body as a whole (e.g., back or internal organ) valued by impairment to earning capacity ✓

Why: Nonscheduled injuries affect the body as a whole or parts not on the schedule (such as the back), and benefits are based on the impact on earning capacity or impairment rating.

Under § 3901.26(B), how is service of a statement of charges and notices on the superintendent accomplished?

1. By filing a single copy with the clerk of the court of common pleas of Franklin county, which then notifies the insurer
2. By publishing the statement of charges as a legal notice in a newspaper of general circulation in Franklin county once a week for three consecutive weeks
3. By delivering two copies to the superintendent or a person in apparent charge of the office, after which one copy is mailed by registered mail to the defendant ✓
4. By transmitting a copy to the insurer's electronic mail address on file with the department and noting it in the record

Why: Section 3901.26(B) requires delivering two copies to the superintendent (or person in apparent charge), after which the superintendent mails one copy by registered mail to the defendant at its last known principal place of business and keeps a record.

A building constructed with exterior walls of brick or masonry but with a combustible (wood) roof is generally classified as:

1. Joisted masonry (masonry) ✓
2. Frame construction
3. Fire-resistive construction
4. Modified fire-resistive

Why: Joisted masonry has masonry exterior walls but combustible floors or roof, making it more fire-resistant than frame but less than fire-resistive.

A business with predictable, frequent small losses decides to fund those losses internally rather than buy first-dollar insurance. This strategy is:

1. Risk transfer to an insurer
2. Joining an assigned-risk plan
3. Risk avoidance
4. Self-insurance (risk retention) ✓

Why: Funding one's own predictable losses internally is self-insurance, a form of planned risk retention.

In a Homeowners policy, Coverage D (Loss of Use) provides which of the following?

1. Defense costs for a liability suit brought against the insured by a guest
2. Medical payments for a guest injured on the residence premises
3. Repair or replacement cost of the damaged dwelling structure itself
4. Additional living expense and loss of fair rental value ✓

Why: Coverage D — Loss of Use pays additional living expenses while the home is uninhabitable and any lost fair rental value if part of the home was rented.

The condition requiring the insured to promptly notify the insurer, protect property from further damage, and cooperate after a loss describes:

1. Abandonment
2. Liberalization
3. Subrogation
4. Duties after a loss ✓

Why: The duties after a loss condition lists the insured's obligations, including prompt notice, protecting property, providing proof of loss, and cooperating.

A 'no benefit to the bailee' clause means:

1. The bailee must pay the deductible before the insurer will release payment for the property
2. The bailee takes title to whatever salvage remains after the insurer has settled the loss
3. The bailee automatically becomes an additional insured while the property is in its custody
4. Insurance proceeds will not benefit anyone holding the property for storage or repair ✓

Why: The no-benefit-to-bailee clause prevents a party temporarily holding the insured's property (a bailee) from benefiting from the insurance.

A licensed agent dies, and the agent's surviving spouse needs time to sell the insurance business. What relief does Ohio law provide?

1. The superintendent may issue a temporary insurance agent license to the surviving spouse ✓
2. The surviving spouse may continue servicing the business for up to five years without any license
3. The book of business transfers automatically to the appointing insurer
4. All policies written by the agent must be canceled within thirty days

Why: § 3905.09(A)(1) allows a temporary license to a surviving spouse to allow time to sell the business, among other purposes.

A covered property loss totals $8,000 and the policy carries a $1,000 deductible. The insurer pays:

1. $1,000
2. $7,000 ✓
3. $9,000
4. $8,000

Why: The insurer pays the loss minus the deductible: $8,000 − $1,000 = $7,000.

An insured has $1M/$2M CGL underlying and a $5M umbrella. A covered liability judgment is $4M for a single occurrence. After the CGL pays its $1M occurrence limit, the umbrella pays:

1. $0
2. $5,000,000
3. $4,000,000
4. $3,000,000 ✓

Why: The CGL pays its $1M occurrence limit; the umbrella pays the remaining $3M excess over the underlying.

Under § 3905.14, when may the superintendent issue a cease-and-desist order, and when must the hearing be set?

1. Only with the written consent of the appointing insurer, and the order takes effect with no hearing unless the agent demands one
2. Only after a criminal conviction becomes final; the hearing follows within ninety days
3. When a violation causes substantial and material harm; the notice sets a hearing not more than fifteen days after the order ✓
4. At any time the superintendent chooses; the hearing must be held within one year

Why: § 3905.14(H) allows a cease-and-desist order where a violation causes substantial and material harm, with a hearing set not more than fifteen days after the order.

The main difference between a 'follow-form' excess policy and an umbrella is that the follow-form excess policy:

1. Provides coverage broader than the underlying for offenses the primary form excludes
2. Covers losses for which no underlying insurance exists at all, subject to a retention
3. Always carries a self-insured retention of at least $10,000 that the insured must pay before it responds
4. Generally provides the same coverage terms as the underlying policy, only with higher limits ✓

Why: A follow-form excess policy mirrors the underlying policy's terms and conditions, simply adding limits; an umbrella can be broader.

Under ORC §3937.31, which is a permitted reason to cancel an Ohio auto policy?

1. The insured added a teenage driver who has held a license for less than one year
2. The insured moved to a lower-rated zip code territory
3. The insured raised the collision deductible at midterm
4. Fraud, concealment, or material misrepresentation by the insured ✓

Why: ORC §3937.31(A)(1) permits cancellation for fraud, concealment, or misrepresentation of a material fact in procurement, renewal, or claims.

Which document in a CPP contains information common to all coverage parts, such as the named insured, policy period, and premium?

1. Interline endorsement
2. Common Policy Declarations ✓
3. Coverage Part Declarations
4. Causes of Loss form

Why: The Common Policy Declarations identify the named insured, mailing address, policy period, business description, and the coverage parts that apply.

Under ORC §4509.101, the financial-responsibility reinstatement fee escalates to what amount for a SECOND violation?

1. $600
2. $150
3. $300 ✓
4. $200

Why: ORC §4509.101(A)(5)(a) sets the reinstatement fee at $300 for a second violation.

A risk retention group is an insurer formed to provide liability coverage for:

1. Federal government employees and their immediate dependents only
2. Members engaged in similar businesses with similar exposures ✓
3. Individual homeowners who cannot obtain coverage in the admitted market
4. The general public on a statewide basis

Why: A risk retention group is a liability insurer owned by members with similar or related liability exposures who share that risk.

Membership in the Ohio FAIR Plan Underwriting Association under ORC §3929.43 consists of:

1. Insurers assigned by the superintendent through a lottery held at each renewal period
2. Only those insurers that voluntarily elect to participate at the beginning of each calendar year, by written notice
3. All insurers authorized to write basic property insurance on a direct basis in Ohio, as a condition of their authority ✓
4. Only domestic insurers organized under Ohio law that write property coverage in this state

Why: §3929.43(A) states the association consists of all insurers authorized to write basic property insurance directly in Ohio, and each must be and remain a member as a condition of its authority to write such insurance.

Under Ohio's Financial Responsibility Law, what is the minimum bodily-injury liability limit an owner's auto policy must provide for injury to or death of ONE person in any one accident?

1. $15,000
2. $25,000 ✓
3. $30,000
4. $50,000

Why: ORC §4509.51(B)(1) fixes the minimum at $25,000 for bodily injury to or death of one person in any one accident.

A warehouse roof collapses under the weight of accumulated snow. The insured has only the Basic Causes of Loss form. Is the collapse from snow weight covered?

1. No, weight of snow/ice is added by the Broad and Special forms, not Basic ✓
2. Only if theft accompanied the collapse
3. Yes, weight of snow is listed among the Basic form's named perils
4. Yes, collapse from any cause is a Basic peril

Why: Weight of snow, ice, or sleet is added in the Broad and Special forms; the Basic form does not include it, so the loss would not be covered.

Employment Practices Liability Insurance (EPLI) covers claims such as:

1. Defects in the products the insured manufactures that injure a consumer
2. Damage to premises the insured rents, caused by a fire it started
3. Wrongful termination, discrimination, harassment, and retaliation by employees ✓
4. Bodily injury to a customer who trips over a floor display inside the insured's retail store

Why: EPLI responds to employment-related claims like discrimination, harassment, wrongful termination, and retaliation.

Installing a sprinkler system and smoke alarms in a warehouse is an example of risk:

1. Avoidance
2. Transfer
3. Sharing
4. Reduction ✓

Why: Risk reduction lowers the frequency or severity of potential losses through measures like safety devices.

Under ORC §3937.32, a cancellation notice must inform the insured that, if the cancellation appears based on erroneous information or is contrary to law, the insured may have the matter reviewed by:

1. The National Association of Insurance Commissioners, on a complaint filed within thirty days of the notice
2. A judge of the court of common pleas in the county where the insured resides, by petition filed within thirty days
3. The superintendent of insurance, upon written application made no later than the effective date ✓
4. The insurer's internal appeals committee, whose decision is final and binding on both the insured and the insurer

Why: §3937.32(A)(6) requires a statement that the insured is entitled to have the matter reviewed by the superintendent of insurance upon written application made not later than the effective date of cancellation.

A claim for a work INJURY in Ohio is forever barred unless notice is filed within what period after the injury?

1. Two years
2. One year ✓
3. Five years
4. Six months

Why: ORC 4123.84(A) bars injury and death claims unless written or facsimile notice of the injured body part is filed with the commission or BWC within one year after the injury or death.

The provision describing the geographic area where coverage applies is the:

1. Policy period
2. Coinsurance clause
3. Insuring agreement
4. Policy territory ✓

Why: The policy territory defines the geographic boundaries within which covered losses or occurrences must take place.