Property And Casualty Insurance Exam Questions And Answers Updated.
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Property and casualty insurance
Institution
Property And Casualty Insurance
Property And Casualty Insurance Exam Questions And Answers Updated.
Which of the following are the authorities that an agent can hold? - correct answer. Express and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing , or eye sight? - co...
Property And Casualty Insurance Exam
Questions And Answers Updated.
Which of the following are the authorities that an agent can hold? - correct answer.
Express and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing , or
eye sight? - correct answer. Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL) policy? -
correct answer. Temporary worker
The major portion of the premium of an equipment breakdown policy pays? - correct
answer. For 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? -
correct answer. 80% 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 - correct answer.
Respond to the consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the -
correct answer. Exclusions.
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? - correct answer. Up to $2,000
All of the following could be considered rebates if offered to an insured in the sale of
insurance EXCEPT - correct answer. Dividends from a mutual insurer.
,Which of the following may be covered by electronic data processing coverage form
under an inland marine policy? - correct answer. a) 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 - correct
answer. Principal
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? - correct answer. Computer fraud
Which of the following would NOT be covered under the liability section of a personal
auto policy? - correct answer. Bodily 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 - correct answer.
30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? -
correct answer. The 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? -
correct answer. $10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover
all of the following EXCEPT - correct answer. Business 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? - correct
answer. $8,000
The risk management technique that is used to prevent a specific loss by not exposing
oneself to that activity is called - correct answer. Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a
claim will be paid by - correct answer. The insurer.
, Which of the following entities must approve all continuing education courses in this
state? - correct answer. The Commissioner
An applicant knowingly fails to communicate information that would help an underwriter
make a sound decision regarding coverage. This is an example of - correct answer.
Concealment
A common exclusion found under physical damage to your auto includes - correct
answer. Mechanical breakdown.
Which of the following is true regarding a risk retention group? - correct answer. It is
a liability insurance company owned by its members.
Which of the following best describes a misrepresentation? - correct answer. Issuing
sales material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? - correct answer.
Completed 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?
- correct answer. Per occurrence
Which of the following is an example of a protective safeguard in a businessowners
policy? - correct answer. Automatic 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? - correct answer. The
change must be reported to the Commissioner.
If more than one person has an insurable interest in the property covered under a
dwelling policy, - correct answer. The 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 - correct
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 - correct answer. A joint
ownership coverage endorsement is added.
Which of the following is defined as a covered cause of loss in businessowners property
coverage? - correct answer. Leakage from fire-extinguishing equipment
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