Property And Casualty Insurance Exam Questions
And Correct Answers
Which of the following is an organization that writes liability insurance to cover the
liability exposure for the mining engineers that belong to its associations: - Answer A
Risk Retention Group
Which of the following parties may assign a standard property policy? - Answer The
insurer with prior written permission of the insurer
Difference of Conditions Policy The difference of conditions policy is a specialty form
used to fill gaps of a property policy. Which of the following is true regarding this policy?
- Answer It is generally written on an open perils basis, excluding losses by perils that are
covered under standard property forms
Under which of the following circumstances, if any, would Part A of a Personal Auto
policy cover a loss? - Choose all that apply Damage to a neighbor's parked car
Assumption of Risk - Choose one of the following options Not an element of negligence
Which of the following coverages is NOT provided under the Personal Liability
Supplement? - Choose one of the following options Medical payments to a regular
resident of the dwelling who sustains an injury
Truckers Coverage Form - Answer Covers business exposures of motor carriers for hire
who transport the goods of others, rather than its own goods.
Under a Homeowners policy, how much coverage is provided for theft or unauthorized
use of a credit or debit card? - Answer 500
,Valuation Clause - Answer A condition under a Building and Personal Property Coverage
Form that determines how losses will be paid?
Discovery Form - Answer A crime for that requires the use of a Retroactive Date
The Farm Liability Policy WOULD NOT cover? - Answer A neighbor who is accidentally
hurt on the insured's farm makes a claim for medical payments 4 years after suffering
injury
False Advertising - Answer It is an unfair trade practice to present any information that is
misleading about any insurer in the conduct of their insurance business.
The Personal Liability endorsement DOES NOT provide coverage for which of the
following? - Answer Injury caused to a regular resident of the dwelling.
The Additional Coverages section of a property insurance policy provides: - Answer
Coverage automatically included in the policy to supplement the basic coverages in the
Insuring Agreement without an additional premium
Premises liability exposure - Answer Not a contingent liability exposure
Part D of the Personal Auto Policy provides which of the following coverages? - Answer
Coverage for Damage to Your Auto
Which of the following statements concerning the Builders Risk form is NOT true? -
ANSWER Coverage is always written on an open peril basis
Which of the following statements concerning a property policy is FALSE? - ANSWER
The purpose of coinsurance is to have the insure retain part of the risk
A Broad Form Homeowners policy would NOT cover which of the following losses? -
Answer Water damage to personal property stored in the basement after a sump pump
,overflows
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include:
- Answer A family member, occupying an insured auto struck by an uninsured vehicle
Combined single limits - Answer The policy liability limits that may be applied to either
bodily injury or property damage, in any combination
Which of the following is NOT one of the limits of liability provided by the CGL? - Answer
Bodily injury limit
A driver of a motor vehicle who is unable to provide current proof of financial
responsibility for the vehicle, at the time of request, to a Nebraska law enforcement
officer is given _____ days to provide proof that financial responsibility was in effect on
the date of the request. - Answer 10
Which of the following coverages is NOT an Additional Coverage under the
Businessowners Coverage Form? - Answer Equipment breakdown
Which of the following is covered under Section II of a Homeowners policy? Bodily injury
to a stranger, caused by an insured's activities while picnicking at a city park
The insured is a member of a homeowners association. A property loss occurs to the
common area owned by all of the association's members and the insured is assessed
$1,500 for the damages. For coverage, the insured's Homeowners policy will pay: -
Answer $1,000 of coverage
All of the following must appear on Form MCS-90, except: - Answer The amount of the
policy premium
Which of the following is true about Personal Inland Marine Insurance? - Answer Since
moveable property is also known as floating property, the policies are sometimes known
as floater policies
, The Commercial basic Cause of Loss Form DOES NOT cover which of the following
perils? - Answer Earth Movement
Which of the following is NOT an Optional Coverage under the Businessowners Policy? -
Answer Personal property of others that are in the insured's care, custody and control
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is
correct? - Answer Business auto coverage for a vehicle the insured rents is added to the
coverage
It would be an unfair trade practice for an agent to charge any fee, compensation, or
charge in addition to the premium charged for a policy that is not stated in the policy.
This would be known as: - Answer Nondisclosure of fees
Under the Nebraska's Workers' Compensation Plan, assignments cannot extend beyond:
- Answer 5 years
Which of the following is not an additional coverage under the BOP? - Answer Personal
effects
P is the agent of the ABC Insurer, who has just provided an insurance policy to M. In this
transaction, who is referred to as the principal? - Answer ABC Insurer
Section II (Liability) of the Garage Coverage Form covers which of the following? -
Answer Property damage for which the insured is legally responsible
All of the following are additional coverages under the Building and Personal Property
Coverage Form, except: - Answer Peak season
Which of the following is true concerning monopolistic states regarding Workers'
Compensation insurance? - Answer In Monopolistic states, Workers' Compensation is
And Correct Answers
Which of the following is an organization that writes liability insurance to cover the
liability exposure for the mining engineers that belong to its associations: - Answer A
Risk Retention Group
Which of the following parties may assign a standard property policy? - Answer The
insurer with prior written permission of the insurer
Difference of Conditions Policy The difference of conditions policy is a specialty form
used to fill gaps of a property policy. Which of the following is true regarding this policy?
- Answer It is generally written on an open perils basis, excluding losses by perils that are
covered under standard property forms
Under which of the following circumstances, if any, would Part A of a Personal Auto
policy cover a loss? - Choose all that apply Damage to a neighbor's parked car
Assumption of Risk - Choose one of the following options Not an element of negligence
Which of the following coverages is NOT provided under the Personal Liability
Supplement? - Choose one of the following options Medical payments to a regular
resident of the dwelling who sustains an injury
Truckers Coverage Form - Answer Covers business exposures of motor carriers for hire
who transport the goods of others, rather than its own goods.
Under a Homeowners policy, how much coverage is provided for theft or unauthorized
use of a credit or debit card? - Answer 500
,Valuation Clause - Answer A condition under a Building and Personal Property Coverage
Form that determines how losses will be paid?
Discovery Form - Answer A crime for that requires the use of a Retroactive Date
The Farm Liability Policy WOULD NOT cover? - Answer A neighbor who is accidentally
hurt on the insured's farm makes a claim for medical payments 4 years after suffering
injury
False Advertising - Answer It is an unfair trade practice to present any information that is
misleading about any insurer in the conduct of their insurance business.
The Personal Liability endorsement DOES NOT provide coverage for which of the
following? - Answer Injury caused to a regular resident of the dwelling.
The Additional Coverages section of a property insurance policy provides: - Answer
Coverage automatically included in the policy to supplement the basic coverages in the
Insuring Agreement without an additional premium
Premises liability exposure - Answer Not a contingent liability exposure
Part D of the Personal Auto Policy provides which of the following coverages? - Answer
Coverage for Damage to Your Auto
Which of the following statements concerning the Builders Risk form is NOT true? -
ANSWER Coverage is always written on an open peril basis
Which of the following statements concerning a property policy is FALSE? - ANSWER
The purpose of coinsurance is to have the insure retain part of the risk
A Broad Form Homeowners policy would NOT cover which of the following losses? -
Answer Water damage to personal property stored in the basement after a sump pump
,overflows
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include:
- Answer A family member, occupying an insured auto struck by an uninsured vehicle
Combined single limits - Answer The policy liability limits that may be applied to either
bodily injury or property damage, in any combination
Which of the following is NOT one of the limits of liability provided by the CGL? - Answer
Bodily injury limit
A driver of a motor vehicle who is unable to provide current proof of financial
responsibility for the vehicle, at the time of request, to a Nebraska law enforcement
officer is given _____ days to provide proof that financial responsibility was in effect on
the date of the request. - Answer 10
Which of the following coverages is NOT an Additional Coverage under the
Businessowners Coverage Form? - Answer Equipment breakdown
Which of the following is covered under Section II of a Homeowners policy? Bodily injury
to a stranger, caused by an insured's activities while picnicking at a city park
The insured is a member of a homeowners association. A property loss occurs to the
common area owned by all of the association's members and the insured is assessed
$1,500 for the damages. For coverage, the insured's Homeowners policy will pay: -
Answer $1,000 of coverage
All of the following must appear on Form MCS-90, except: - Answer The amount of the
policy premium
Which of the following is true about Personal Inland Marine Insurance? - Answer Since
moveable property is also known as floating property, the policies are sometimes known
as floater policies
, The Commercial basic Cause of Loss Form DOES NOT cover which of the following
perils? - Answer Earth Movement
Which of the following is NOT an Optional Coverage under the Businessowners Policy? -
Answer Personal property of others that are in the insured's care, custody and control
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is
correct? - Answer Business auto coverage for a vehicle the insured rents is added to the
coverage
It would be an unfair trade practice for an agent to charge any fee, compensation, or
charge in addition to the premium charged for a policy that is not stated in the policy.
This would be known as: - Answer Nondisclosure of fees
Under the Nebraska's Workers' Compensation Plan, assignments cannot extend beyond:
- Answer 5 years
Which of the following is not an additional coverage under the BOP? - Answer Personal
effects
P is the agent of the ABC Insurer, who has just provided an insurance policy to M. In this
transaction, who is referred to as the principal? - Answer ABC Insurer
Section II (Liability) of the Garage Coverage Form covers which of the following? -
Answer Property damage for which the insured is legally responsible
All of the following are additional coverages under the Building and Personal Property
Coverage Form, except: - Answer Peak season
Which of the following is true concerning monopolistic states regarding Workers'
Compensation insurance? - Answer In Monopolistic states, Workers' Compensation is
