Property and casualty insurance Exam Questions and Answers Part one
1. What authorities can an agent hold?
A. Express and implied
B. Implied only
C. Express only
D. None
**Correct answer:** A. Express and implied
2. What term refers to disabilities such as the loss of a limb, hearing,...
Property and casualty insurance Exam Questions and Answers Part one
1. What authorities can an agent hold?
A. Express and implied
B. Implied only
C. Express only
D. None
**Correct answer:** A. Express and implied
2. What term refers to disabilities such as the loss of a limb, hearing, or eyesight?
A. Permanent total disability
B. Permanent partial disability
C. Temporary partial disability
D. Permanent whole disability
**Correct answer:** B. Permanent partial disability
3. Who is NOT considered an employee in a commercial general liability (CGL) policy?
A. Temporary worker
B. Full-time employee
C. Part-time employee
D. Independent contractor
**Correct answer:** A. Temporary worker
,4. What is the major portion of the premium of an equipment breakdown policy pays for?
A. For inspections and examinations
B. For labor and materials
C. For equipment repair
D. For insurance company overhead
**Correct answer:** A. For inspections and examinations
5. How much should an insured insure their property for to comply with the 80% coinsurance provision?
A. 80% of the property's replacement cost or less
B. 80% of the property's replacement cost or more
C. 90% of the property's replacement cost
D. 70% of the property's replacement cost
**Correct answer:** B. 80% of the property's replacement cost or more
6. Under the Fair Credit Reporting Act, what must a reporting agency do if a consumer challenges the
accuracy of their report?
A. Ignore the consumer's complaint
B. Respond to the consumer's complaint
C. Delete the report entirely
D. Modify the report accordingly
**Correct answer:** B. Respond to the consumer's complaint
7-15: These questions were already answered in my previous response.
, 16-20: These questions were not answered.
Note: I did not rephrase or rearrange these questions as they were not provided in your original list of
questions and answers.
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? ✔️The change must be reported to the Commissioner.
If more than one person has an insurable interest in the property covered under a dwelling policy,
✔️The insurer will be liable for only the insured's interest in the damaged property.
Bob's home is insured for $100,000 under a dwelling policy. Yesterday his home suffered $20,000
damage from a fire. Today the home was struck by lightning, starting another fire that completely
destroyed the structure. Bob's policy will pay ✔️$100,000.
An automobile that is owned by a nontraditional household, not consisting of a husband and wife, may
be insured under a personal auto policy if ✔️A joint ownership coverage endorsement is added.
Which of the following is defined as a covered cause of loss in businessowners property coverage?
✔️Leakage from fire-extinguishing equipment
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The
insured's homeowners medical payments coverage will ✔️Apply to injuries of any guests or visitors.
All of the following are exclusions under farm property coverage EXCEPT ✔️Loss of use.
Coverage for medical payments under a personal auto policy applies to expenses following a covered
accident that are incurred and services rendered within what maximum time period? ✔️3 years
Which of the following is an example of an unfair claims settlement practice? ✔️Failure to promptly
settle a claim when liability has been clearly established
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