EXAM FX PROPERTY AND CASUALTY TESTS COMPILATION BUNDLE

The declarations section in a homeowners policy provides all of the following information EXCEPT correct answer: Policy exclusions An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? correct answer:...

Restoring an insured financially after a claim is known as correct answer: indemnity Prior to paying a claimant under a professional liability policy, the insurer must correct answer: Obtain the consent of the insured. The purpose of purchasing an umbrella liability policy is to provide cor...

HO - 2 - Broad Form Named Peril HO - 3 - Special Form Open & Named Peril HO - 4 - Renters/Tenants Form Named Peril HO - 5 - Comprehensive Form Open Peril HO - 6 - Condo Form Named Peril HO - 8 - Modified Form Named Peril Homeowners Liability - Coverages E & F Homeowners Li...

____ is uncertainty of loss correct answer: risk ____ is a transfer of risk from the insured to the insurer correct answer: insurance ____ risk means there is no chance of gain. It is insurable. correct answer: pure ____ risk means there is a chance of a loss or a gain. It is not insurab...

Which of the following policies does NOT contain an automatic reinstatement provision? a) Business automobile liability b) Personal automobile liability with split limits c) Homeowners d) General liability written with an aggregate limit correct answer: General Liability written with an aggrega...

Law of Large Numbers correct answer: The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. Insurance correct answer: Transfers the risk of loss from an individual or business entity to an insurance company The three elements of insurable...

The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. correct answer: Law of Large Numbers Transfers the risk of loss from an individual or business entity to an insurance company correct answer: Insurance 1) Financial 2) Blood (relative...

1. In dwelling policies, automatic increase in insurance is (Choose from the following options) 1. Coverage for newly acquired property. 2. Coverage by endorsement. 3. Automatic coverage. 4. Coverage without additional premium. correct answer: 2. Coverage by endorsement. 2. Personal b...

Which dwelling policy coverage will provide protection for contents damaged by fire in an insured dwelling? correct answer: Coverage C-Personal Property Under what conditions can broad theft coverage be added to a dwelling policy? correct answer: if the insured is the owner-occupant of the dwel...

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by correct answer: The golfer's homeowners liability coverage What was the purpose of the Motor Carrier Act of 1980? correct answer: To establish financial responsibility...

What is burglary? correct answer: The forced entry into another's premises with felonious intent. Under absolute liability, does an injured party need to prove negligence? correct answer: No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence ...

Personal Lines - Includes Dwelling and Homeowners policies Commercial Lines - Business policies such as Businessowners, Commercial Property and Commercial Package policies Dwelling Property Policy - Insures properties solely used for residential purposes, can be used to insure the dwelling onl...

Which endorsement Is used by individual business owners who use Company vehicles for personal use rather than Buying a car? correct answer: Individual named insured What type of liablity would a person who owns wild animals have? correct answer: Absolute The designation symbols used in comme...

Dwelling ('02) Policy correct answer: Is used to insure 1-4 unit residential dwellings that are not eligible for coverage under the regular homeowners program because of age, location, value, or other factors. 3 Coverage Forms (Dwelling Program) correct answer: 1.DP 00 01- Basic 2.DP 00 02-Br...

Situations to Purchase Dwelling Property Policy correct answer: •Up to 5 roomers/boarders •Up to 4 residential units, property in construction •Owner occupied or tenant occupied, mobile homes •seasonal dwellings DP 1 correct answer: Basic Form - Named Peril DP 2 correct answer: B...

An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? correct answer...

Insurable Interest correct answer: Something that, if damaged, will cause the insured to incur financial loss Risk correct answer: Chance of loss occurring Pure Risk correct answer: Situations that can only result in loss or no change (Insurable) Speculative Risk correct answer: Involve...

Duties of the insurer found in property policy conditions include all of the following EXCEPT a) Return any premiums to the insured. b) Notify the insured in the event of financial difficulty. c) Pay covered losses. d) Provide advance notice of cancellation. correct answer: B According to th...

An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? a) 80% of the property's replacement cost or more b) 100% of the market value c) $400,000 d) $32,000 correct answer: A Whi...

Risk is correct answer: uncertainty of loss. Insurance is correct answer: a transfer of risk from the insured to the insurer. Pure risk means correct answer: there is no chance of gain. Pure risk is correct answer: insurable. Speculative risk means correct answer: you could lose or ...

If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident? correct answer: $30,000 - Split limits expressed as 30/50/25 would provide $30,000 coverage for bodily injury per person, $50,000 for all bodily injuries, ...