If a person intends to satisfy the automobile financial responsibility law by purchasing insurance, what are the minimum limits required in Connecticut? {{Correct Ans- $20,000/$40,000/$10,000. The law requires that limits in the amount of $20,000 bodily injury to one person in one accident/$40,000 bodily injury to two or more people in one accident and $10,000 property damage. If a third party is handed a check from the insured that has been altered and pays the false amount on the check, is such a loss covered? Forgery coverage is carried by the insured. {{Correct Ans- The insurance company will honor the claim. This insuring agreement offers the insured protection from forgeries or alterations in several instances. If a forged check is presented to the insured for payment and the insured hands over the money, such a loss is covered. If a third party is handed a check from the insured that has been altered and pays the false amount on the check, such a loss is covered. If an agent of the insured presents a forged draft to a third party and receives a "sum certain in money," such a loss is covered. This insuring agreement also provides defense costs. If the insured is sued for refusing to pay a check or draft or promissory note because he or she thinks the item is forged or altered, this insuring agreement requires the insurer to pay defense costs. The insured has to have the written consent of the insurer to defend against the lawsuit and the legal expenses have to be reasonable. The defense costs are in addition to the stated limit of insurance applicable to the forgery or alteration coverage. However, the insured has to pay the defense costs up front; this is an indemnification agreement. What is the general penalty for a violation of the insurance codes of Connecticut for which no other penalty is provided? {{Correct Ans- $15,000 The purpose of asking the court to make a declaratory judgment is: {{Correct Ans- To make a binding decision as to the relationship between the parties and their rights with respect to the matter before the court. Mary has a personal auto policy in force, including other than collision (comprehensive) coverage, when her automobile is stolen. The theft is properly reported to the police and the insurance company. She then rents a car. Which of the following is true? {{Correct Ans- After a waiting period of 48 hours her policy will pay rental costs up to $20 per day up to a maximum of $600. . When an HO-3 is issued with a $75,000 dwelling limit on a one-family dwelling, what is the automatic amount of insurance on Other Structures? {{Correct Ans- $7,500 Other Structures (Coverage B) are automatically covered for 10% of the limit that applies to the dwelling. Insureds can request higher limits if the other structures on their premises are worth more than 10% of the dwelling limit. In order to issue a written binder for a commercial property policy, what is the minimum consideration an agent must secure from an applicant? {{Correct Ans- A promise to pay the premium. A binder of insurance can be made verbally or in writing. It can be made without collecting a premium. It is assumed that a premium payment will be made when the policy is actually issued to replace the binder, which is merely temporary evidence of coverage. (Note: Some states require that a binder be made in writing.)