Property And Casualty Insurance Exam Q&A Part One. Terms like:
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT - Answer: Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage for...
Property And Casualty Insurance Exam Q&A
Part One
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT - Answer: Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage form under an
inland marine policy? - Answer: a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs
The party to a surety or fidelity bond who promises to fulfill the obligation is the - Answer:
Principal
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,The transfer of money from inside a banking premises to a person other than a messenger
outside those premises or to a place outside those premises is covered under which commercial
crime coverage? - Answer: Computer fraud
Which of the following would NOT be covered under the liability section of a personal auto
policy? - Answer: Bodily injury is caused by the insured's negligence while driving a three-wheel
all-terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her residence or
business address, he/she must notify the Department of Insurance and any company for which
the producer holds an appointment within - Answer: 30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? - Answer:
The insurer pays the mortgagee according to the mortgagee's interest in the property.
What is the civil penalty for violating a cease and desist order of the Commissioner? - Answer:
$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the
following EXCEPT - Answer: Business liability.
If a property is covered by Company A for $20,000 and Company B covers the same property for
$40,000, how much will Company A pay on a $24,000 loss? - Answer: $8,000
Which of the following are the authorities that an agent can hold? - Answer: Express and
implied
Which of the following terms refers to such disabilities the loss of a limb, hearing, or eye sight? -
Answer: Permanent partial disability
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,Who is NOT considered an employee in a commercial general liability (CGL) policy? - Answer:
Temporary worker
The major portion of the premium of an equipment breakdown policy pays? - Answer: For
inspections and examinations
An insured owns a building valued at $400,000. To comply with the 80% coinsurance provision
of his insurance policy, how, much should he insure the property for? - Answer: 80% of the
property's replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must - Answer: Respond to the consumer's
complaint.
All of the following are found in the declarations section of a policy EXCEPT the - Answer:
Exclusions.
The cost of restoring farm records is an additional coverage offered under a farm policy. How
much will the policy pay to restore the records? - Answer: Up to $2,000
The risk management technique that is used to prevent a specific loss by not exposing oneself
to that activity is called - Answer: Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will
be paid by - Answer: The insurer.
Which of the following entities must approve all continuing education courses in this state? -
Answer: The Commissioner
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, An applicant knowingly fails to communicate information that would help an underwriter make
a sound decision regarding coverage. This is an example of - Answer: Concealment
A common exclusion found under physical damage to your auto includes - Answer: Mechanical
breakdown.
Which of the following is true regarding a risk retention group? - Answer: It is a liability
insurance company owned by its members.
Which of the following best describes a misrepresentation? - Answer: Issuing sales material
with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? - Answer: Completed value
form
An insured has a liability policy that sets the amount for all claims that arise from a single
incident at $50,000. Which type of limit of liability does this insured's policy have? - Answer: Per
occurrence
Which of the following is an example of a protective safeguard in a businessowners policy? -
Answer: Automatic sprinkler system
If a licensee wants to transact insurance under a different name than that listed on his or her
producer's license, which of the following must occur? - Answer: The change must be reported
to the Commissioner.
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