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Property and casualty insurance Exam Questions and Answers Part one Questions and Answers Fully Solved
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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? - answer Express and
implied
Which of the following terms refers to such disabilities the loss of a limb, hearing , or
eye sight? - answer Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL) policy? -
answer Temporary worker
The major portion of the premium of an equipment breakdown policy pays? - answerFor
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? -
answer80% 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 - answerRespond
to the consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the -
answerExclusions.
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? - answerUp to $2,000
All of the following could be considered rebates if offered to an insured in the sale of
insurance EXCEPT - answerDividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage form
under an inland marine policy? - answera) 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 -
answerPrincipal
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? - answerComputer fraud
Which of the following would NOT be covered under the liability section of a personal
auto policy? - answerBodily 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 - answer30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? -
answerThe 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? -
answer$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover
all of the following EXCEPT - answerBusiness 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? -
answer$8,000
The risk management technique that is used to prevent a specific loss by not exposing
oneself to that activity is called - answerAvoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a
claim will be paid by - answerThe insurer.
Which of the following entities must approve all continuing education courses in this
state? - answerThe Commissioner
An applicant knowingly fails to communicate information that would help an underwriter
make a sound decision regarding coverage. This is an example of -
answerConcealment
A common exclusion found under physical damage to your auto includes -
answerMechanical breakdown.
, Which of the following is true regarding a risk retention group? - answerIt is a liability
insurance company owned by its members.
Which of the following best describes a misrepresentation? - answerIssuing sales
material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? - answerCompleted
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?
- answerPer occurrence
Which of the following is an example of a protective safeguard in a businessowners
policy? - answerAutomatic 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? - answerThe change must
be reported to the Commissioner.
If more than one person has an insurable interest in the property covered under a
dwelling policy, - answerThe 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 -
answer$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 - answerA joint ownership
coverage endorsement is added.
Which of the following is defined as a covered cause of loss in businessowners property
coverage? - answerLeakage 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 - answerApply to
injuries of any guests or visitors.
All of the following are exclusions under farm property coverage EXCEPT - answerLoss
of use.
Coverage for medical payments under a personal auto policy applies to expenses
following a covered accident that are incurred and services rendered within what
maximum time period? - answer3 years
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