EXAMFX – P& C GUARANTEE EXAM
NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND DETAILED VERIFIED
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An insured has a personal umbrella with a $2,000 self-insured
retention (SIR). Assuming no other policy is involved, how much
would the umbrella pay after a $12,000 personal injury liability
claim? - ✔✔✔ Correct Answer > $10,000
What is the purpose of the Terrorism Risk Insurance Act? -
✔✔✔ Correct Answer > To share the risk of loss form
terrorist attacks with the insurance industry
Which of the following injuries may be covered under Coverage
C - Medical Payments of a commercial general liability policy? -
✔✔✔ Correct Answer > Injuries to a member of the
general public that occurs on premises
,In the event of a loss, the most the insurer will pay is - ✔✔✔
Correct Answer > The amount of the loss or the limits as
stated in the policy, whichever is less.
The property policy condition that automatically provides
broader coverage when an insurer makes revisions to a current
policy edition without charging the insured additional premium
is called the - ✔✔✔ Correct Answer > Liberalization
clause
Upon payment for a loss, the insured is obligated to surrender
to the insurer the right to sue a negligent third party. This is
called - ✔✔✔ Correct Answer > Subrogation
What type of insurer uses a formal sharing agreement? - ✔✔✔
Correct Answer > Reciprocal insurers
Under an HO-2 policy, the insurer will pay no more than the
actual cash value of the property damage until - ✔✔✔
Correct Answer > The property repair or replacement is
complete
,Which of the following types of property would be covered
under Coverage C - Personal Property in a dwelling policy? -
✔✔✔ Correct Answer > Rowboats
Which of the following persons is required to hold a producer
license in this state? - ✔✔✔ Correct Answer > A salaried
employee who advertises and solicits insurance
An insured has decided to never drive another vehicle and
wants to transfer his auto insurance policy to his wife. What
does the insured need to transfer the policy? - ✔✔✔
Correct Answer > The written consent of the insurer
Which of the following covers the interest of a secured lender
in personal property? - ✔✔✔ Correct Answer > Loss
payable clause
What two policy components are part of every commercial
package policy? - ✔✔✔ Correct Answer > Common
policy declarations and common policy conditions
, All of the following persons would be covered under a business
auto policy EXCEPT - ✔✔✔ Correct Answer > An
employee of the named insured operating an auto that is
owned by the employee's spouse
A structure may be eligible for coverage under the National
Flood Insurance Program if it meets all of the following
requirements EXCEPT - ✔✔✔ Correct Answer > Is
entirely over water
What kind of coverage does Form DP-3 provide? - ✔✔✔
Correct Answer > Open peril
All of the following statements are TRUE about earthquake
coverage in property policies EXCEPT - ✔✔✔ Correct
Answer > Coverage is commonly provided through a
federally-funded program
Under a commercial general liability policy, which of the
following is NOT considered mobile equipment? - ✔✔✔
Correct Answer > An automobile used as a company car
by a real estate company
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