PROPERTY AND CASUALTY ACTUAL
EXAM QUESTIONS AND DETAILED
CORRECT ANSWERS | PROPERTY AND
CASUALTY LATEST 2024-2025
Under the Business Owners Policy, the insurer may
examine books and records for how long after the policy's
expiration?
A. Two years
B. Three years
C. Four years
D. One year Correct Answer B
The building and personal property in the Business
Owners Policy provides coverage for property as long as it
is within _______ of the building.
A. 300 feet
B. 200 feet
C. 100 feet
D. 50 feet Correct Answer C
Inside premises robbery or safe burglary will pay for which
of these?
A. Bodily harm to employees causes by the burglar
B. Fire damage to a safe
C. Damage to front door caused by a burglar
D. Explosion damage to a safe caused by a burglar
Correct Answer D
,Which act allowed for the merger of Insurance companies
and banks?
A. Fair Credit Reporting Act
B. Gramm-Leach-Bliley Act
C. Glass-Stegall Act
D. Merchant Marine Act Correct Answer B
If a person uses violence and threats to take personal
property this would be described as?
A. Theft
B. Mysterious disappearance
C. Burglary
D. Robbery Correct Answer D
In insurance, to determine acceptable risks is the primary
responsibility of the?
A. Producer
B. Underwriter
C. Auditor
D. Adjuster Correct Answer B
Which of these can be used to determine insurance rates
in Texas?
A. Religion
B. Race
C. National Origin
D. Sex Correct Answer D
A Surplus Lines Broker is best describes as which of the
following?
,A. They are brokers who deal with direct writing
companies only
B. They are brokers that deal with admitted carriers only
C. They place risks with non-admitted insurers when
coverage cannot be placed with admitted insurer carriers
D. They are brokers who accept business only from non-
resident agents Correct Answer C
In an insurance contract the _______ is something of
value that is exchanged by the parties to the contract.
A. Consideration
B. Acceptance
C. Offer
D. Condition Correct Answer A
Experience rating is what type of rate making for an
insurer?
A. A pool of similar risks
B. An underwriter's best judgment of the risk
C. Policyholder's past losses
D. Based upon a published manual of all rates Correct
Answer C
If the insurer and insured disagree concerning a loss.
Which of these could the insurer choose?
A. Arbitration
B. Apportionment
C. Cancellation
D. Subrogation Correct Answer A
What are the three types of hazards in insurance?
, A. Peril, Risk, and loss
B. Direct, indirect, and Uncovered
C. Physical, moral, and morale
D. Open, closed, and calculated Correct Answer C
Which of these would be considered an Unfair Claims
Practice under Texas Law?
A. Failing to acknowledge communications relating to a
claim within 5 days
B. Failing to provide a reasonable explanation for the
denial of a claim
C. Denying payment of a claim
D. Delaying the payment of a claim to wait for a death
certificate on the insured in a life policy Correct Answer B
When ABC completed a check of its inventory, it
discovered a shortage in the quantity of inventory and
materials. They looked for evidence of a crime both at the
warehouse and in the electronic record. When they
couldn't find specific evidence of a crime, they?
A. Had to absorb the claim since no evidence of a crime
existed
B. Filed a claim under the employee theft insuring
agreement
C. Filed a claim with their insurance company seeking
coverage under the mysterious disappearance clause of
their burglary coverage
D. Filed it as computer fraud claim and assumed their
system was flawed Correct Answer C
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TUTORWAC. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.99. You're not tied to anything after your purchase.
