Louisiana Property and Casualty exam
questions with answers
Surety Bond - Answer-aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to
engage in activity
Fidelity Bonds - Answer-aka Honesty Bonds- cover employer from direct loss due to
fraudulent & dishonest acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
Commercial Basic Form --causes of loss - Answer-Covered- Fire, lightning, windstorm,
smoke, aircraft, riot, sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility
services, war, fungus, rot
additional coverage available for fungus rot and bacteria $15,000
Commercial Broad Form-- causes of loss - Answer-covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
Commercial Special Form--causes of loss - Answer-provides coverage for risk of direct
physical loss unless excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile
articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
$250 Stamps
Commercial Building & Personal Property Coverage - Answer-Covers: building and
business personal property
excludes: Debt, animals, autos, canoes
,limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000
Pollution clean up, $10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
Commercial Builders Risk Coverage Form - Answer-covers: Foundation, Machinery,
building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
Commercial Condominium Association Coverage Form - Answer-includes the building &
fixtures that are part of the building
if unit owner has insurance covering the same property the associations insurance will
be primary
Condominium Commercial Unit - Answer-Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exist
Time Element Coverage Form - Answer-aka business income form - provides insurance
for two types of INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
Legal Liability Coverage Form - Answer-insures the insured's legal liability for loss of
damage to real or personal property owned by others but in insured's care
written for tenant
Covers for loss of use and pays defensive coverage
Premises & Operations Exposure - Answer-an insured business conducts its operations
both at its office & elsewhere
if a business or any employer causes bodily injury or property damage the business
may be legally liable
, must take place within the coverage territory
covers liability for bodily & property
Commercial Products Exposure - Answer-leaves a business vulnerable to legal liability
for defects in product also failure to warn with respect to product
covers bodily injury or property damage the product causes
Commercial Completed Operations Exposure - Answer-Typically begin after the job has
been completed
Coverage will pay for bodily injury and/or property damage caused by the negligent or
faulty workmanship
will not cover cost to replace the work that caused loss
Commercial Contingent Liability Exposure - Answer-Liability of others may fall on
insured
owners & contractors protective liability arises out of the work of independent contractor
performs for insured
Contractual liability- if insured owns premises but leases out, any injury could be legally
liable
Commercial Occurrence Form - Answer-Provides Coverage for losses that take place
during the policy period
Coverage is triggered when an "accident" takes place during policy period and within
coverage territory
Commercial Claims-Made Form - Answer-Provides coverage for losses that happen
after the retroactive date and before the end of policy period but claim reported during
policy period
Commercial Forgery or Alteration - Answer-insures against forgery of checks, drafts,
and promissory notes
Inside the Premises: Theft of Money & Securities - Answer-covers theft, disappearance,
or distraction of money inside the premises.
covers damage to the insured's premises or exterior when caused by theft
covers loss or damage to a locked safe that is from theft
Inside the Premises: Robbery or Safe Burglary other property - Answer-Covers most
types of tangible property from loss or damage from robbery
questions with answers
Surety Bond - Answer-aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to
engage in activity
Fidelity Bonds - Answer-aka Honesty Bonds- cover employer from direct loss due to
fraudulent & dishonest acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
Commercial Basic Form --causes of loss - Answer-Covered- Fire, lightning, windstorm,
smoke, aircraft, riot, sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility
services, war, fungus, rot
additional coverage available for fungus rot and bacteria $15,000
Commercial Broad Form-- causes of loss - Answer-covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
Commercial Special Form--causes of loss - Answer-provides coverage for risk of direct
physical loss unless excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile
articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
$250 Stamps
Commercial Building & Personal Property Coverage - Answer-Covers: building and
business personal property
excludes: Debt, animals, autos, canoes
,limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000
Pollution clean up, $10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
Commercial Builders Risk Coverage Form - Answer-covers: Foundation, Machinery,
building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
Commercial Condominium Association Coverage Form - Answer-includes the building &
fixtures that are part of the building
if unit owner has insurance covering the same property the associations insurance will
be primary
Condominium Commercial Unit - Answer-Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exist
Time Element Coverage Form - Answer-aka business income form - provides insurance
for two types of INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
Legal Liability Coverage Form - Answer-insures the insured's legal liability for loss of
damage to real or personal property owned by others but in insured's care
written for tenant
Covers for loss of use and pays defensive coverage
Premises & Operations Exposure - Answer-an insured business conducts its operations
both at its office & elsewhere
if a business or any employer causes bodily injury or property damage the business
may be legally liable
, must take place within the coverage territory
covers liability for bodily & property
Commercial Products Exposure - Answer-leaves a business vulnerable to legal liability
for defects in product also failure to warn with respect to product
covers bodily injury or property damage the product causes
Commercial Completed Operations Exposure - Answer-Typically begin after the job has
been completed
Coverage will pay for bodily injury and/or property damage caused by the negligent or
faulty workmanship
will not cover cost to replace the work that caused loss
Commercial Contingent Liability Exposure - Answer-Liability of others may fall on
insured
owners & contractors protective liability arises out of the work of independent contractor
performs for insured
Contractual liability- if insured owns premises but leases out, any injury could be legally
liable
Commercial Occurrence Form - Answer-Provides Coverage for losses that take place
during the policy period
Coverage is triggered when an "accident" takes place during policy period and within
coverage territory
Commercial Claims-Made Form - Answer-Provides coverage for losses that happen
after the retroactive date and before the end of policy period but claim reported during
policy period
Commercial Forgery or Alteration - Answer-insures against forgery of checks, drafts,
and promissory notes
Inside the Premises: Theft of Money & Securities - Answer-covers theft, disappearance,
or distraction of money inside the premises.
covers damage to the insured's premises or exterior when caused by theft
covers loss or damage to a locked safe that is from theft
Inside the Premises: Robbery or Safe Burglary other property - Answer-Covers most
types of tangible property from loss or damage from robbery
