Exam (elaborations)
Property and casualty insurance Exam Questions and Answers Part one
Property and casualty insurance Exam Questions and Answers Part one
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Property and casualty insurance ExamQuestions and Answers Part one
Which of the following are the authorities that an agent can hold? - -Express
and implied
-Which of the following terms refers to such disabilities the loss of a limb,
hearing , or eye sight? - -Permanent partial disability
-Who is NOT considered an employee in an commercial general liability
(CGL) policy? - -Temporary worker
-The major portion of the premium of an equipment breakdown policy pays?
- -For inspections and examinations
-An insured owns a building valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how , much should he insure
the property for? - -80% of the property's replacement cost or more
-Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the reporting
agency must - -Respond to the consumer's complaint.
-All of the following are found in the declarations section of a policy EXCEPT
the - -Exclusions.
-The cost of restoring farm records is an additional coverage offered under a
farm policy. How much will the policy pay to restore the records? - -Up to
$2,000
-All of the following could be considered rebates if offered to an insured in
the sale of insurance EXCEPT - -Dividends from a mutual insurer.
-Which of the following may be covered by electronic data processing
coverage form under an inland marine policy? - -a) Computer hardware that
is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch
cards and discs
-The party to a surety or fidelity bond who promises to fulfill the obligation is
the - -Principal
, -The transfer of money from inside a banking premises to a person other
than a messenger outside those premises or to a place outside those
premises is covered under which commercial crime coverage? - -Computer
fraud
-Which of the following would NOT be covered under the liability section of a
personal auto policy? - -Bodily injury is caused by the insured's negligence
while driving a three-wheel all-terrain vehicle.
-When a producer holding a certificate or a broker's license has a change in
his/her residence or business address, he/she must notify the Department of
Insurance and any company for which the producer holds an appointment
within - -30 days.
-What will happen if a house covered by a standard mortgage clause is a
total loss? - -The insurer pays the mortgagee according to the mortgagee's
interest in the property.
-What is the civil penalty for violating a cease and desist order of the
Commissioner? - -$10,000
-The Business Pursuits endorsement under Section II of a homeowners policy
will cover all of the following EXCEPT - -Business liability.
-If a property is covered by Company A for $20,000 and Company B covers
the same property for $40,000, how much will Company A pay on a $24,000
loss? - -$8,000
-The risk management technique that is used to prevent a specific loss by
not exposing oneself to that activity is called - -Avoidance.
-In a farm policy, any cost incurred by the insurer for the investigation or
defense of a claim will be paid by - -The insurer.
-Which of the following entities must approve all continuing education
courses in this state? - -The Commissioner
-An applicant knowingly fails to communicate information that would help an
underwriter make a sound decision regarding coverage. This is an example
of - -Concealment
-A common exclusion found under physical damage to your auto includes - -
Mechanical breakdown.
, -Which of the following is true regarding a risk retention group? - -It is a
liability insurance company owned by its members.
-Which of the following best describes a misrepresentation? - -Issuing sales
material with exaggerated statements about policy benefits
-A builder's risk form is most often written as which of the following? - -
Completed value form
-An insured has a liability policy that sets the amount for all claims that arise
from a single incident at $50,000. Which type of limit of liability does this
insured's policy have? - -Per occurrence
-Which of the following is an example of a protective safeguard in a
businessowners policy? - -Automatic sprinkler system
-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.
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