Property and casualty insurance Exam
Questions and Answers Part one
Which of the subsequent are the authorities that an agent can preserve? - ANSExpress and
implied
Which of the following terms refers to such disabilities the loss of a limb, listening to , or eye
sight? - ANSPermanent partial incapacity
Who is NOT considered an employee in an commercial widespread legal responsibility (CGL)
coverage? - ANSTemporary employee
The essential portion of the premium of an system breakdown coverage can pay? - ANSFor
inspections and examinations
An insured owns a building valued at $400,000. To follow the 80% coinsurance provision of his
coverage coverage, how , lots ought to he insure the assets for? - ANS80% of the assets's
substitute value or more
Under the Fair Credit Reporting Act, if the patron challenges the accuracy of the records
contained in his or her file, the reporting corporation need to - ANSRespond to the client's
grievance.
All of the following are observed inside the declarations segment of a policy EXCEPT the -
ANSExclusions.
The fee of restoring farm statistics is an extra insurance offered beneath a farm coverage. How
much will the policy pay to restore the data? - ANSUp to $2,000
All of the subsequent could be taken into consideration rebates if presented to an insured within
the sale of insurance EXCEPT - ANSDividends from a mutual insurer.
Which of the following can be blanketed with the aid of digital facts processing insurance shape
beneath an inland marine coverage? - ANSa) Computer hardware this is specially scheduled.
B) Extra rate the insured incurs to maintain the business following a loss.
C) Data processing media, inclusive of magnetic tapes or paper tapes, punch playing cards and
discs
,The celebration to a surety or constancy bond who promises to satisfy the obligation is the -
ANSPrincipal
The switch of money from inside a banking premises to someone apart from a messenger
outdoor the ones premises or to a place out of doors those premises is covered under which
commercial crime insurance? - ANSComputer fraud
Which of the subsequent could NOT be protected underneath the liability phase of a private
auto coverage? - ANSBodily damage is resulting from the insured's negligence at the same time
as driving a 3-wheel all-terrain automobile.
When a producer retaining a certificates or a broking's license has a alternate in his/her
residence or commercial enterprise deal with, he/she must notify the Department of Insurance
and any corporation for which the producer holds an appointment within - ANS30 days.
What will happen if a residence included with the aid of a general mortgage clause is a total
loss? - ANSThe insurer will pay the mortgagee in line with the mortgagee's interest within the
property.
What is the civil penalty for violating a quit and desist order of the Commissioner? -
ANS$10,000
The Business Pursuits endorsement underneath Section II of a homeowners coverage will cowl
all of the following EXCEPT - ANSBusiness liability.
If a belongings is included through Company A for $20,000 and Company B covers the same
assets for $forty,000, how an awful lot will Company A pay on a $24,000 loss? - ANS$eight,000
The chance control method this is used to save you a particular loss with the aid of not exposing
oneself to that activity is known as - ANSAvoidance.
In a farm coverage, any fee incurred by means of the insurer for the research or protection of a
declare may be paid by way of - ANSThe insurer.
Which of the following entities must approve all persevering with schooling courses in this
kingdom? - ANSThe Commissioner
An applicant knowingly fails to communicate information that could assist an underwriter make a
legitimate choice regarding insurance. This is an instance of - ANSConcealment
A commonplace exclusion discovered below physical damage for your automobile consists of -
ANSMechanical breakdown.
, Which of the following is actual concerning a hazard retention group? - ANSIt is a liability
insurance corporation owned with the aid of its participants.
Which of the following first-rate describes a misrepresentation? - ANSIssuing sales cloth with
exaggerated statements approximately coverage advantages
A builder's hazard shape is most often written as which of the following? - ANSCompleted cost
form
An insured has a liability coverage that units the amount for all claims that rise up from a single
incident at $50,000. Which form of restrict of legal responsibility does this insured's policy have?
- ANSPer incidence
Which of the following is an example of a protective protect in a businessowners policy? -
ANSAutomatic sprinkler machine
If a licensee desires to transact insurance under a exclusive call than that indexed on his or her
producer's license, which of the subsequent must occur? - ANSThe alternate have to be
reported to the Commissioner.
If multiple individual has an insurable hobby within the assets included underneath a residing
coverage, - ANSThe insurer can be liable for only the insured's interest inside the broken
belongings.
Bob's home is insured for $100,000 under a dwelling coverage. Yesterday his domestic suffered
$20,000 harm from a fire. Today the house changed into struck by means of lightning, starting
every other fire that absolutely destroyed the structure. Bob's coverage can pay - ANS$a
hundred,000.
An automobile that is owned by means of a nontraditional household, no longer inclusive of a
husband and wife, can be insured beneath a non-public auto coverage if - ANSA joint ownership
coverage endorsement is added.
Which of the following is described as a covered cause of loss in businessowners assets
insurance? - ANSLeakage from hearth-extinguishing gadget
The insured's mom-in-regulation broke her leg falling down the the front steps of the insured's
premises. The insured's owners medical bills insurance will - ANSApply to accidents of any
visitors or visitors.
All of the subsequent are exclusions underneath farm property insurance EXCEPT - ANSLoss
of use.
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