Fire & Casualty Practice Exam #1

148 Questions  I  By Petsya
Practice exam for fire & casualty.150 questions3 hour time limit.

  
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1.  Which is not a reason for a company to obtain reinsurance?
A.
B.
C.
D.
2.  The only exceptions to the free insurance prohibition are as follows, except:
A.
B.
C.
D.
3.  Which of the following statements about the requirements for rates in not true?
A.
B.
C.
D.
4.  One of the major differences between a Business Auto Policy and a Personal Auto Policy are the endorsments. Which coverage listed below is considered an endorsement on the Business Auto Policy?
A.
B.
C.
D.
5.  All of the following are true about COBRA except:
A.
B.
C.
D.
6.  In a legal relationship, what authority does a pricipal (company) give the agent in writing?
A.
B.
C.
D.
7.  Which of the following is not an exempt category under Workers Compensation insurance?
A.
B.
C.
D.
8.  Under coverage D, loss of use, if the home owner occupied the home, this coverage pays for:
A.
B.
C.
D.
9.  According to the Code, the word 'person' means:
A.
B.
C.
D.
10.  The process whereby an insurer has an agreement with other insurers to share amounts of insurance over established limits is known as:
A.
B.
C.
D.
11.  Which of the following is not a type of insurer?
A.
B.
C.
D.
12.  The following acts are unlawful and are misdemeanors in California except when perfomed by a surplus line broker except?
A.
B.
C.
D.
13.  Which of the following is false about the characteristics of a BOP policy?
A.
B.
C.
D.
14.  A Claims Made reporting form states that:
A.
B.
C.
D.
15.  Under HO policy coverage, earth movement is a general exclusion, which homeowner's policy has done away with the exclusion for concurrent caustion regarding this peril?
A.
B.
C.
D.
16.  Which of the following is a basis provision of all property policies for property that can't be moved, such as ahouse and sends payment to the insured as well as the lien holder in the event of a loss?
A.
B.
C.
D.
17.  Which of the following are not actions of transacting insurance?
A.
B.
C.
D.
18.  What is the significance of the SEUA case of 1944?
A.
B.
C.
D.
19.  Which of the following is a Personal Lines Licensee not allowed to transact?
A.
B.
C.
D.
20.  What are the two types of major coverages in Section II of the Homeowners forms?
A.
B.
C.
D.
21.  The probability of accident or sickness within a given group of people is known as:
A.
B.
C.
D.
22.  According the a new legal development, AB996 Chapter 647, regarding Hate Crimes against Reproductive Health Facilities, all of the following are true except:
A.
B.
C.
D.
23.  Under the Building and Personal Property coverage form, vacancy means:
A.
B.
C.
D.
24.  A person within California shall not conduct any insurance on property located or operations conducted within, or on the lives or persons of residents of California with nonadmitted insurers except by:
A.
B.
C.
D.
25.  Which of the following is not an exception to the free insurance prohibition?
A.
B.
C.
D.
26.  Johnny told the insurace agent he thing he drives about 10,000 miles a year, but in fact it's more like 15,000 miles. What term would best describe this situation?
A.
B.
C.
D.
27.  Which of the following properties are not included in insured locations and residence premises under Section II of the Homeowner's Policy?
A.
B.
C.
D.
28.  Which of the following is not associated with the word insurance?
A.
B.
C.
D.
29.  How does the association provide assistance for people who wish to apply for insurance through the FAIR plan?
A.
B.
C.
D.
30.  The Business owners Policy (BOP) is a package policy combining what types of coverages?
A.
B.
C.
D.
31.  Which of the following Homeowners policies covers a home that was built 75 years ago?
A.
B.
C.
D.
32.  All of the following are covered perils on a Crop Insurance policy, except:
A.
B.
C.
D.
33.  When a company works to pay claims and other expenses and still makes a profit, the degree or range of risk is known as:
A.
B.
C.
D.
34.  When can insurers include an expense factor added to the premium charged for a class of policies?
A.
B.
C.
D.
35.  Which of the following Homeowner's policies have both dwelling and person property on a broad peril form?
A.
B.
C.
D.
36.  Which of the following is not a Specified Cause of Loss?
A.
B.
C.
D.
37.  All of the following are advantages of using the Earthquake endorsement except:
A.
B.
C.
D.
38.  An owner of an auto repair business would be best covered under which of the following?
A.
B.
C.
D.
39.  Which of the following would not be covered by flood insurance through the National Flood Insurance Program (NFIP)?
A.
B.
C.
D.
40.  If a ship owner who purchases an Ocean Marine policy on an All Risk form runs into a dock whole transporting cargo for a customer, the policy would pay for:
A.
B.
C.
D.
41.  All the following are part of the six specs of an insurance policy except:
A.
B.
C.
D.
42.  Barratry is defined as:
A.
B.
C.
D.
43.  Incurred loss + loss adjusting expense/earned premium =
A.
B.
C.
D.
44.  What is the purpose of the Fair plan?
A.
B.
C.
D.
45.  When coverage is terminated under a group plan, the coverage for a totally disables employee who submits a claim prior to the termination of the policy will:
A.
B.
C.
D.
46.  Who writes standard coverages in California but the insurer is unlicensed?
A.
B.
C.
D.
47.  Coverage A of the Commercial Building and Personal Property coverage form covers which of the following:
A.
B.
C.
D.
48.  The California Code simply states that to be an insurer:
A.
B.
C.
D.
49.  A person within California shall not conduct any insurance on property located or operations conducted within, or on the lives or persons of residents of California, with nonadmitted insurers except by:
A.
B.
C.
D.
50.  Who is eligible for Low Cost Auto Insurance Program?
A.
B.
C.
D.
51.  The client was found to be 20% at fault in a $10,000 claim and would pay out $2,000. This is an example of:
A.
B.
C.
D.
52.  Mayberry Construction has a Business Auto Policy covering a 1995 pickup truck for liability and physical damage coverage. At the time of an accident, the driver of the pickup truck was pulling a trailer carrying a bulldozer. If the bulldozer slips off and causes bodily injury to another party, this is coverage under which of the following policies?
A.
B.
C.
D.
53.  Which of the following describes Fair Discrimination?
A.
B.
C.
D.
54.  A special surplus line broker may trasact 'special surplus lines.' All of the following are special surplus lines except
A.
B.
C.
D.
55.  Which is not a power of a Managing General Agent?
A.
B.
C.
D.
56.  The insurer may examine books and records of an insured:
A.
B.
C.
D.
57.  According to the definition of an ideally insurable risk, all the following are required except:
A.
B.
C.
D.
58.  If the insurer has Physical Damage Settlement Option to repair, replace, or pay for damage, what will the company use in determining how much to pay out for a claim?
A.
B.
C.
D.
59.  Tenant Improvements and Betterment losses are valued at:
A.
B.
C.
D.
60.  Under Section II of the Homeowners form, what does coverage E (personal liability) cover?
A.
B.
C.
D.
61.  The percentage of a deceased worker's weekly wages payable to the spouse and dependent children is:
A.
B.
C.
D.
62.  Which of the following is true when two or more policies are covering an auto?
A.
B.
C.
D.
63.  Under the Ordinance of Law Coverage endorsement; which of the following is not provided?
A.
B.
C.
D.
64.  If an insurer's legal reserve funds are less than the minimum required by law, the company is impaired in its ability to pay claims and it technically:
A.
B.
C.
D.
65.  Every resident insurance fire and casualty broker/agent shall maintain:
A.
B.
C.
D.
66.  The system that monitors and tracks clients transactions and communiccation for an agent is know as:
A.
B.
C.
D.
67.  The Homeowners Watercraft Endorsement under Section II includes all the following except:
A.
B.
C.
D.
68.  An insured who takes necessary precautions to reduce Workers Compensation claims or severity of losses, could receive a discount throught a(an):
A.
B.
C.
D.
69.  Which of the following was not a responsibility of an employer under common law obligation for workers compensation in the early 1900's?
A.
B.
C.
D.
70.  An insurance company that has met all the qualifications designed by the Department of Insurance and has received a Certificate of Authority from the DOI to trasact insurance in this state is known as:
A.
B.
C.
D.
71.  The declarations page of a commercial policy will state which of the following:
A.
B.
C.
D.
72.  What unique exposure is present in a farming business?
A.
B.
C.
D.
73.  Which of the following are ways of managing risks?
A.
B.
C.
D.
74.  Which of the following is not covered in the homeowners watercraft endorsement under section II?
A.
B.
C.
D.
75.  If you are acting in the best interest of the insured and handling their funds and affairs then you are acting as a:
A.
B.
C.
D.
76.  Which of the following would be used to cover property of others left in a camera shop for repairs?
A.
B.
C.
D.
77.  Which of the following would not be considered a binder?
A.
B.
C.
D.
78.  According to the Code, the word 'person' means:
A.
B.
C.
D.
79.  According to Personal Lines - Earthquake Coverage, which of the following is not true?
A.
B.
C.
D.
80.  Which of the following is not a common exclusion on the Boiler & Machinery policy?
A.
B.
C.
D.
81.  Transportation coverage on the BOP would apply to which of the following?
A.
B.
C.
D.
82.  What are the four types of hazards?
A.
B.
C.
D.
83.  All the following are ways insurance agencies market their business except:
A.
B.
C.
D.
84.  It is against the law for an insurance licensee to offer free insurance to:
A.
B.
C.
D.
85.  In a Boat owner's policy, liability coverage includes all the following except:
A.
B.
C.
D.
86.  In the event of a loss, the insured has the responsibility to do all the following except:
A.
B.
C.
D.
87.  A policy of liability insurance issued to a local public entity or state agency as a named insured shall not be cancelled or have renewal declined for reasons other than nonpayment of premium unless notice is mailed to the named insured at least _____ days prior to the effective date or nonrenewal of at least _____ days prior to the effective date of cancellation.
A.
B.
C.
D.
88.  Good records must be kept by the agent and be made available to the DOI for a period of:
A.
B.
C.
D.
89.  Expense is defined as:
A.
B.
C.
D.
90.  All of the following are examples of being a good agent for your client except:
A.
B.
C.
D.
91.  Which of the following is not an element of a contract to be enforced by the law?
A.
B.
C.
D.
92.  What type of endorsement waives the standard requirement of a "4-wheel vehicle and/or a vehicle weight of less than 10,000 pounds" limitation?
A.
B.
C.
D.
93.  Under the Commercial Crime insurance policy, 'occurrence' is defined as:
A.
B.
C.
D.
94.  What does an HO 6 cover?
A.
B.
C.
D.
95.  Which Commercial Property Causes of Loss form has the broadest coverage?
A.
B.
C.
D.
96.  All the following are exclusions under CGL policy except:
A.
B.
C.
D.
97.  On a Commerical package policy, "you" and "your" refer to:
A.
B.
C.
D.