Pearson VUE Casualty Insurance Practice Exam Graded A+
1. To cancel a Personal Auto Policy, an insured must typically take which action?
Answer: C. Giving written notice to the insurance company
2. In insurance, what term refers to continuous or repeated exposure to conditions that may result...
Pearson VUE Casualty Insurance Practice Exam Graded A+
1. To cancel a Personal Auto Policy, an insured must typically take which action?
Answer: C. Giving written notice to the insurance company
2. In insurance, what term refers to continuous or repeated exposure to conditions that may result in
bodily injury or damage?
Answer: B. An occurrence
3. Which type of vehicle is considered a temporary substitute auto under a Personal Auto policy?
Answer: D. An auto rented by an insured when the insured's car is in a garage for repairs
4. What is an insurance binder best described as?
Answer: D. Temporary short-term evidence of coverage
5. What increases the chance of loss is known as:
Answer: B. Hazard
6. According to the Fair Credit Reporting Act, what does the insurance company need to do?
Answer: D. Inform the applicant a credit report may be obtained
The limits of liability are found in which of the following sections of a casualty policy?
A. Conditions
,B. Insuring Agreement
C. Declarations
D. Definitions ✔️C
A policyholder would expect to find which of the following information in the Insuring Agreement
section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss ✔️B
Products Liability coverage would insure damages that arise from which of the following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store demonstration.
D. A bicycle rider is injured when a wheel malfunctions. ✔️D
Which of the following sections of an insurance policy would explain the term "auto" ?
, A. Declarations
B. Definitions
C. Insuring agreement
D. Obligations of the insurance company ✔️B
A business insured under a Commercial General Liability policy has a General Aggregate limit of
$1,000,000 and an Occurrence limit of $100,000. An injured party is awarded $100,000. What limits will
remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 ✔️B
In insurance, all of the following losses are examples of pure risk EXCEPT:
A. auto accident
B. flood damage to a home
C. decline of stock values on the stock market
D. fire damage to a building ✔️C
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