Property and Casualty Exam Questions With Correct Answers
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Course
Property and casualty
Institution
Property And Casualty
Property and Casualty Exam Questions With
Correct Answers
How many days under the builder's risk form until policy ends if construction is completed? -
answer90 days
Protective Safeguards Endorsement - answerUnder BOP endorsement that requires insured to
have fire or security service as a cond...
Property and Casualty Exam Questions With
Correct Answers
How many days under the builder's risk form until policy ends if construction is completed? -
answer✔90 days
Protective Safeguards Endorsement - answer✔Under BOP endorsement that requires insured to
have fire or security service as a condition
Under the protective safeguards endorsement how long until you would have to notify the
insurance company about an issue with a sprinkler system? - answer✔48 hours
BOP - answer✔Commercial package policy that provides property and liability insurance to
certain types of small businesses
Who is the ideal BOP prospect? - answer✔The small, well managed, one location business with
easily predicted coverage needs
Under the BOP what sq footage and gross sales can eligible risks not exceed? - answer✔25,000
ft in total floor area or $3 million in annual gross sales at each location
What's the building size limit to be eligible for a BOP? - answer✔Building cannot exceed 6
stories in height or contain more than 100,000 sq ft
What's coverage A and coverage B under a BOP? - answer✔Coverage A - Buildings
Coverage B - Business Personal Property
Liability policies usually pay damages for the insured liabilities for
Bodily injury
Property damage
Personal injury
Intentional torts - answer✔A B and C
An aggregate limit is the most a company will pay
For any one event
For any one person or item of property - answer✔Over the policy year
What are the four components needed to have negligence? - answer✔Duty to others
Breach of this duty
Damages
Proximate cause
Compensatory damages - answer✔Damages that reimburse the injured party only for losses
that were actually sustained
Name and define the two types of compensatory damages - answer✔Special and general
Special damages include all direct and specific expenses involved in a particular loss (medical
expenses, lost wages)
General damages compensate other things like pain and suffering and disfigurement
What are the four coverages of a basic dp form? - answer✔Coverage A - Dwelling
Coverage B - other structures
Coverage C - personal property
Coverage D - fair rental value
What are the extended perils covered under a dwelling policy? - answer✔Wind
Hail
Aircraft
Riot / civil commotion
Volcanic eruption
Explosion
Smoke
What four Other Coverages are covered under the DP-2 and 3? - answer✔Plants
Collapse
Glass
What is the Ordinance Or Law? - answer✔Coverage that allows payment of up to 10% of
coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other
structure to conform with applicable building and land use codes
Which dwelling form covers losses to the dwelling and other structures on a replacement cost
basis? - answer✔DP-2 and DP-3
Under the dwelling policy, what coverage would reimburse a family for having to stay in a motel
because they had a fire? - answer✔Coverage E - additional living expense
What's the percentages paid for losses under Coverage B, C, and D under the dwelling policy? -
answer✔Coverage B other structures is 10% of coverage A limit
Coverage C personal property is 20%
Coverage D fair rental value is 20% divided by 12 months
What does the HO-5 policy provide and what's another name for its form? -
answer✔Comprehensive form that provides open peril coverage for dwellings, other structures,
and personal property
What for of homeowners insurance is good for tenants and what does it provide? -
answer✔HO-4 and provides broad coverage for personal property and no coverage for the
dwelling
Which homeowners form provides broad coverage for both the dwelling and its contents? -
answer✔HO-3
An extension of coverage is good for what? How long is it good for? - answer✔Newly acquired
property coverage
14 days before you need to contact your insurance company
What's the formula for a co-insurance penalty? - answer✔Insurance carried over insurance
required times loss equals the amount paid
Liability losses are known as - first party, second party, or third party losses? - answer✔Third
party - the insurance company is the second party and you're the first
Insurance is a contract by which one seeks to protect another from ______________. -
answer✔Loss.
the event of a covered loss to her home, how much will the bank receive? - answer✔Nothing
Aggregate Limit of Liability - answer✔the maximum limit of coverage available under a
liability policy during a policy year regardless of the number of claims that may be made or the
number of accidents that may occur
Speculative Risk - answer✔events in which the principal has both the chance of winning or
losing
Direct Loss - answer✔includes damage where the insured peril was the proximate cause of loss
All of the following are factors in the determination of "Actual Cash Value" EXCEPT:
a)Replacement cost
b) Original cost, new
c) Kind and quality of property
d) Age of the property - answer✔b)Original cost, new
Loss of use - answer✔coverage that covers any additional living expenses
In a liability policy with split limits of 15/30/10, what is the maximum amount that would be
payable in the event of injury to a single person? - answer✔$15,000
If an insured violates an insurance contract without the knowledge of the mortgage holder, after a
loss what happens? - answer✔The insured cannot collect but the mortgage holder will still be
paid
Consequential Loss - answer✔amount of loss incurred as a result of being unable to use
business property or equipment
Theft - answer✔unlawful taking of property
Robbery - answer✔similar to theft, but with the added element of force or use of a weapon
Vicarious liability - answer✔situation where someone is held responsible for the actions or
omissions of another person
In a workplace context, an employer can be liable for the acts or omissions of its employees,
provided it can be shown that they took place in the course of their employment
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