Casualty PearsonVUE Practice Tests Verified Answers
A private passenger auto policy can be canceled more than 60 days after the effective date for what
reason?
A. Cancellation by the insured
B. Suspension of the insured's driver's license
C. Nonpayment of premium
D. Expiration of the po...
Casualty PearsonVUE Practice Tests Verified Answers
A private passenger auto policy can be canceled more than 60 days after the effective date for what
reason?
A. Cancellation by the insured
B. Suspension of the insured's driver's license
C. Nonpayment of premium
D. Expiration of the policy
Correct answer: B. Suspension of the insured's driver's license
Why may an insurance company deny an employee's claim for Workers Compensation benefits?
A. The employee was injured at work
B. The employee was drunk and caused the injury
C. The employer did not report the accident
D. The employee was not employed by the company
Correct answer: B. The employee was drunk and caused the injury
Which of the following kinds of property/casualty insurance do CO rate regulations NOT apply to?
✅Surplus Lines insurance
A bond guarantees the fulfilling of an obligation by one party to another party by a third party is known
as a: ✅surety bond
Which of the following occurrences would be included under the definition of a personal injury? ✅A
tenant is evicted by his landlord and sues the landlord for invasion of privacy and wrongful eviction.
(personal injury includes invasion of privacy)
, Under a Fidelity Bond, which of the following individuals is considered the obligee?
(Employee or employer?) ✅An employer
Principal (aka obligor), obligee, and surety (aka guarantor) definitions:
A. Principal Definition
+responsibility
B. Obligee Definition
+outcome if principal defaults on obligation
C. A. Surety Definition
+outcome if principal defaults on obligation ✅A. Principal= person who promises to fulfill obligations
and purchases the bond;
+ goes through underwriting process
B. Obligee=
person to whom the promise is made;
+bonds paid to obligee if principal defaults on obligation
C. Surety=
surety/bonding company providing financial backing;
+pays if principal defaults on obligation
Which of the following statements best describes a representation in an insurance application? ✅It is a
statement made by the insured that certain conditions exist at the time of application
Premium costs for standard Workers Compensation insurance are paid by: ✅Employers only
An insured has an automobile policy with a combined single limit of $500,000 for Bodily Injury and
Property Damage. After an accident, a court awards $300,000 bodily injury and $25,000 property
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