Property and Casualty Insurance Licensing Exam with Verified Answers
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Course
Property and Casualty Insurance Licensing
Institution
Property And Casualty Insurance Licensing
Property and Casualty Insurance Licensing Exam with Verified
Answers
1. An Other Insur-
ance Clause
To prevent recovery beyond the amount of the
insured's actual loss, the policy will contain:
2. B) upset of the
vehicle
Collision coverage of an auto policy covers:
a) road damage to the tir...
Property and Casualty Insurance Licensing Exam with Verified
Answers
1. An Other Insur- To prevent recovery beyond the amount of the
ance Clause insured's actual loss, the policy will contain:
2. B) upset of the Collision coverage of an auto policy covers:
vehicle a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects
3. a) occurrence The maximum amount of payable for all losses resulting
limit from one event is known as the:
a) occurrence limit
b) aggregate limit
4. d) Basic form Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form
5. c) $500 The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000
6. d) concealment The insured intentionally did not inform the insurer that
the insured owned only 35% of the property. The
insurer can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment
7. c) presumption Which of the following is NOT a defense against negli-
of negligence gence?
a) contributory negligence
b) statues of limitations
, Property and Casualty Insurance Licensing Exam with Verified
Answers
c) presumption of negligence
d) assumption of risk
8. b) implied au- The presumed authority necessary to carry out the pro-
thority ducer's routine tasks is known as:
a) expressed authority
b) implied authority
9. b) there is Which of the following statements regarding the
no coverage for Towing and Labor endorsement is false?
roadside labor a) it will pay to the limit stated in the endorsement each
costs time a covered vehicle is disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above
10. b) sending A licensee may violate federal law and be subject to a
threatening let- fine and prison for doing which of the following?
ters to the state a) selling insurance w/ a nonresident license
insurance regu- b) sending threatening letters to the state insurance reg-
lator ulator
c) fraudulently telling an insured a claim isn't covered on
the policy
d) murdering an applicant
11. a) a restaurant Which of the following is not an insured location for
party room the liability coverage under the homeowners policy?
insured has rent- a) a restaurant party room the insured has rented for a
ed for a business business meeting
meeting b) the insured's cemetery plot
c) a restaurant party room the insured has rented for a
birthday party
d) vacant land owned by the insured
12. d) floods and Special covers each of the following EXCEPT:
earthquakes a) theft
b) mysterious disappearance
c) Acts of God
d) floods and earthquakes
, Property and Casualty Insurance Licensing Exam with Verified
Answers
13. b) $50,000 Sam has underinsured motorist coverage with limits of
$100/$300. Sam is injured by Quincy who has limits of
$50/$100. Sam's injuries are valued at $125,000. Sam's
underinsured motorist coverage will pay;
a) $25,000
b) $50,000
c) $75,000
d) $125,000
14. c) meeting of the The contract agreement may be referred as the:
minds a) legal interest test
b) good faith
c) meeting of the minds
d) promise of indemnification
15. c) a boat with Which of the following boats owned by the insured would
a 15 horsepower require the HO watercraft endorsement for liability cover-
inboard motor age?
a) a boat with 25 horsepower outboard engine
b) a sailboat with 25 ft. in length
c) a boat with a 15 horsepower inboard motor
d) none of the above
16. d) express au- Authority expressed orally by the insurer to the agent is:
thority a)apparent authority
b) no authority
c) implied authority
d) express authority
17. b) notarization Contracts require each of the following except:
a) consideration
b) notarization
c) implied authority
d) express authority
18. b) notarization Contracts require each of the following except:
a) consideration
b) notarization
c) legal purpose
d) competent parties
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