PSI Practice Questions Property
Casualty
An insured operates a auto repair shop and has a garage coverage form with garage keepers insurance
when an employee on a test drive with a customer's car is involved in a crash. How will the customer's
car be covered by the insured's policy? - correct answer ✔✔The customer's car is covered for any
physical damage while in the custody of the insured.
Liability arising out of any of the following is excluded from the personal and advertising injury liability
coverage EXCEPT - correct answer ✔✔unknowingly inflicting injury that violates the rights of another.
A bank customer's identity was compromised and the thieves made numerous purchases from a retailer
by signing the customer's checks. When the bank refused to make payment for the goods, the retailer
brought suit against the bank. Which coverage indemnified the bank for liability in the suit? - correct
answer ✔✔forgery and alteration
Workers' compensation coverage is rated on the basis of which of the following? - correct answer
✔✔employer's payroll
Which of the following is the party who agrees to be responsible for loss in the case of a fidelity bond? -
correct answer ✔✔the surety
The insured carries underinsured motorists coverage limits of 250/500/250 on his automobile policy and
his vehicle is struck by an at fault motorist who insures with the State minimum for liability of 20/40/10.
If the insured brings suit for bodily injury damages to himself of $500,000, how much will he recover
from at fault driver's policy? - correct answer ✔✔$20k
Under the commercial general liability which one of the following is covered under supplementary
payments? - correct answer ✔✔cost of bail bonds
When the insured's child spills red juice on the carpet of insured's covered automobile, which of the
following coverages will apply? - correct answer ✔✔comprehensive
, Which of the following best describes the commercial general liability?s general aggregate annual limit
as it applies to the coverage parts of the CGL? - correct answer ✔✔Coverage A, B, and C apply in sum
and are the most that will be paid subject to the general aggregate annual limit.
Under liability coverage which of the following will trigger coverage for property damage? - correct
answer ✔✔unintended damage to tangible property of others
All of the following are exclusions are found under the personal auto policy Part A liability coverage,
EXCEPT - correct answer ✔✔bodily Injury to an insured's nonresident family member or relative.
All of the following specify limits of insurance for the commercial general liability EXCEPT - correct
answer ✔✔legal defense.
All of the following activities would warrant the imposition of absolute liability EXCEPT - correct answer
✔✔risky transportation.
Which of the following is TRUE when the insured's limits of insurance apply per occurrence? - correct
answer ✔✔Coverage is triggered for smoke damage to siding caused by repeated acts by insured's
neighbor.
Which of the following describes market value? - correct answer ✔✔It is what property could be sold for.
Which of the following defines the term peril? - correct answer ✔✔cause of loss
The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing
which of the following? - correct answer ✔✔subsidies, loss sharing or excess coverage
All of the following are responsibilities of the insured listed in the loss provisions for most property
insurance contracts EXCEPT - correct answer ✔✔to determining adequate indemnification.
Casualty
An insured operates a auto repair shop and has a garage coverage form with garage keepers insurance
when an employee on a test drive with a customer's car is involved in a crash. How will the customer's
car be covered by the insured's policy? - correct answer ✔✔The customer's car is covered for any
physical damage while in the custody of the insured.
Liability arising out of any of the following is excluded from the personal and advertising injury liability
coverage EXCEPT - correct answer ✔✔unknowingly inflicting injury that violates the rights of another.
A bank customer's identity was compromised and the thieves made numerous purchases from a retailer
by signing the customer's checks. When the bank refused to make payment for the goods, the retailer
brought suit against the bank. Which coverage indemnified the bank for liability in the suit? - correct
answer ✔✔forgery and alteration
Workers' compensation coverage is rated on the basis of which of the following? - correct answer
✔✔employer's payroll
Which of the following is the party who agrees to be responsible for loss in the case of a fidelity bond? -
correct answer ✔✔the surety
The insured carries underinsured motorists coverage limits of 250/500/250 on his automobile policy and
his vehicle is struck by an at fault motorist who insures with the State minimum for liability of 20/40/10.
If the insured brings suit for bodily injury damages to himself of $500,000, how much will he recover
from at fault driver's policy? - correct answer ✔✔$20k
Under the commercial general liability which one of the following is covered under supplementary
payments? - correct answer ✔✔cost of bail bonds
When the insured's child spills red juice on the carpet of insured's covered automobile, which of the
following coverages will apply? - correct answer ✔✔comprehensive
, Which of the following best describes the commercial general liability?s general aggregate annual limit
as it applies to the coverage parts of the CGL? - correct answer ✔✔Coverage A, B, and C apply in sum
and are the most that will be paid subject to the general aggregate annual limit.
Under liability coverage which of the following will trigger coverage for property damage? - correct
answer ✔✔unintended damage to tangible property of others
All of the following are exclusions are found under the personal auto policy Part A liability coverage,
EXCEPT - correct answer ✔✔bodily Injury to an insured's nonresident family member or relative.
All of the following specify limits of insurance for the commercial general liability EXCEPT - correct
answer ✔✔legal defense.
All of the following activities would warrant the imposition of absolute liability EXCEPT - correct answer
✔✔risky transportation.
Which of the following is TRUE when the insured's limits of insurance apply per occurrence? - correct
answer ✔✔Coverage is triggered for smoke damage to siding caused by repeated acts by insured's
neighbor.
Which of the following describes market value? - correct answer ✔✔It is what property could be sold for.
Which of the following defines the term peril? - correct answer ✔✔cause of loss
The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing
which of the following? - correct answer ✔✔subsidies, loss sharing or excess coverage
All of the following are responsibilities of the insured listed in the loss provisions for most property
insurance contracts EXCEPT - correct answer ✔✔to determining adequate indemnification.
