Fire & Casualty - Practice Exam 3

150 Questions  I  By Pchinna
Fire & Casualty California Insurance ExamPractice Paper 3

  
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1.  What course of action does a party to a contract have if the other party is found to be in breach of that contract ?
A.
B.
C.
D.
2.  A representation in an insurance contract qualifies as which of the following ?
A.
B.
C.
D.
3.  What does it mean if an agen'ts license is inactive ?
A.
B.
C.
D.
4.  The ordinance or law exclusion found in property policies such as the commercial property coverage, and in the homeowner's policy have the following effect:
A.
B.
C.
D.
5.  Extra expense insurance covers:
A.
B.
C.
D.
6.  A plate glass/glass coverage form is needed by some insureds.  Which of the following statements about the coverage for the peril of glass breakage in commercial property for a "building and personal property" basic, broad and special causes of loss forms is true ?
A.
B.
C.
D.
7.  In the state of CA, no rate will remain in effect if it is considered to be any of the following, except:
A.
B.
C.
D.
8.  The amount paid for damage to property which is equal to the price for which it could have been sold is
A.
B.
C.
D.
9.  The limited Mexico endorsement applies to trips to Mexico with a duration of
A.
B.
C.
D.
10.  Which of the following types of coverage would pay for losses which occurred during the policy period and are found for up to one year after policy termination?
A.
B.
C.
D.
11.  Which coverage is needed to protect physicians, surgeons, and dentists for their professional activities
A.
B.
C.
D.
12.  What must an insurer do who accepts an application from an agent who is not specifically appointed that insurer, and then issues a policy from that application?
A.
B.
C.
D.
13.  Under a major medical plan, coinsurance equals a percentage
A.
B.
C.
D.
14.  If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident ?
A.
B.
C.
D.
15.  The equipment dealer's coverage form covers all of the following types of property, except:
A.
B.
C.
D.
16.  A self-insured group qualifies for stop-loss after claims:
A.
B.
C.
D.
17.  A reporting form is used for property insurance
A.
B.
C.
D.
18.  All of the following contribute to the rising cost of Worker's Compensation Insurance, except:
A.
B.
C.
D.
19.  Which type of exposure can be best defined as a condition or situation where the exposure to finance loss is presented to an individual or family from causes such as injury, disability, death, sickness, or unemployment ?
A.
B.
C.
D.
20.  All of the following would be considered benefits of Insurance, except:
A.
B.
C.
D.
21.  Which of the following is also known as a human loss exposure ?
A.
B.
C.
D.
22.  If a tenant is insured under a building personal property coverage form, when is the property considered vacant ?
A.
B.
C.
D.
23.  A commercial property policy can provide coverage for all of the following, except:
A.
B.
C.
D.
24.  Which of the following types of coverage would be needed to cover a contract's bulldozers which are used in the contract's business but are not held for sale ?
A.
B.
C.
D.
25.  It is a violation of the CA insurance Code to act as a producer for a non-admitted carrier unless:
A.
B.
C.
D.
26.  In California, excess and surplus lines coverage needs to be placed through:
A.
B.
C.
D.
27.  Under a scheduled personal property endorsement, loss to stamps are excluded when they are:
A.
B.
C.
D.
28.  Which of the following is most likely to be eligible for the CA Fair Plan ?
A.
B.
C.
D.
29.  What items of personal property are included in Coverage A under a HO-3 policy ?
A.
B.
C.
D.
30.  Mitchell's (unendorsed) personal auto policy liability coverage would pay for:
A.
B.
C.
D.
31.  All Workers Compensation policies provide
A.
B.
C.
D.
32.  All of the following are principal rating factors under Proposition 103 for personal auto policies, except;
A.
B.
C.
D.
33.  Under a builders risk form, how much insurance is required to pay any loss without a penalty for underinsurance?
A.
B.
C.
D.
34.  Which of the following persons is not an insured under Section I of a homeowner's policy?
A.
B.
C.
D.
35.  An unbrella Policy
A.
B.
C.
D.
36.  All of the following expenses are covered in addition to the limits of liability under Coverage A of a personal auto policy, except:
A.
B.
C.
D.
37.  Under a commercial property coverage form, all of the following properties are included in the definition of "building." except:
A.
B.
C.
D.
38.  Carmen is driving her own car on behalf of her employer.  Carmen's negligent operation of her car injured member of the public.  The employer may be held liable because of what is called:
A.
B.
C.
D.
39.  Which of the following perils is insured against in the Special form but not in the Basic form ?
A.
B.
C.
D.
40.  Which of the following types of policies pays for bodily injury or property damage which occurs or is discovered during the policy period ?
A.
B.
C.
D.
41.  If an armored car carrying an insured's bank deposit is robbed, what Insurance would the insured need to be covered?
A.
B.
C.
D.
42.  Under the liability portion of an unendorsed personal auto policy, what coverage is available fi the namedinsured is operating a company car ?
A.
B.
C.
D.
43.  A possibility of financial loss resulting from the ownership of property is knowns as:
A.
B.
C.
D.
44.  If the vacancy permit endorsement is added to a building and personal property coverage form, the vacancy conditions under the basic policy is:
A.
B.
C.
D.
45.  You are to meet with a small furniture manufacturer and make property and liability insurance recommendations.  You have insured many risks of this type in the past and have a good idea of what their needs may be.  there are several populat ways of determining business loss exposures.  Which of the following ways are the least professional and the least likely to correctly identify the loss exposures?  You:
A.
B.
C.
46.  Where would an insured who is in the business of importing exotic animals from Africa most likely go to obtain insurance coverage?
A.
B.
C.
D.
47.  A commercial building and a personal property coverage form covers three kinds of property, one which has "your business peronal property," "Your" refers to:
A.
B.
C.
D.
48.  Which of the following losses is not covered by either the personal auto policy collision or other than collision coverage?
A.
B.
C.
D.
49.  Self-funding of employee benefit plans cannot be used for:
A.
B.
C.
D.
50.  How much additional coverage is provided under Homeowners 3 for ordinance or law ?
A.
B.
C.
D.
51.  What is the primary difference between a HO-2 and a HO-4 policy ?
A.
B.
C.
D.
52.  A commercial lines program policy, common policy conditions, do not incude which of the following as a condition ?
A.
B.
C.
D.
53.  Jack, a condo owner, wants a fire and allied lines coverage for personal property, liability coverage for himself and family members, and protection for assessments or damage for the building structure and other common areas.  Which homeowners form would you recommend ?
A.
B.
C.
D.
54.  Which property coverage form is best suited for a structure under construction ?
A.
B.
C.
D.
55.  What perils are insured against under the "additional coverages - property removed" of a homeowners policy ?
A.
B.
C.
D.
56.  Which of the following is not required when electing continuation of coverage under COBRA ?
A.
B.
C.
D.
57.  The adult day care coverage level of a LTC policy provides for:
A.
B.
C.
D.
58.  The CA insurance code:
A.
B.
C.
D.
59.  The commercial General Liability(CGL) contract contains an exclusion for liquor liability.  The purpose of this exclusion is to exclude coverage for law liability losses arising from:
A.
B.
C.
D.
60.  Which of the following is commonly found in liability policies, thus creating the need for inland marine coverage ?
A.
B.
C.
D.
61.  The measure of loss potential which is used for pricing of insurance is knows as:
A.
B.
C.
D.
62.  Coverage on an annual transit policy is usually provided on which of the following basis ?
A.
B.
C.
D.
63.  A newly acquired motorcycle is not automatically covered under a personal auto policy (PAP) because:
A.
B.
C.
D.
64.  What would be the most likely action taken by the Insurance Commissioner if a licensee induces a client to co-sign a loan ?
A.
B.
C.
D.
65.  Under the "examination of your books and records" condition of a commercial polic, when may an insurer examine an insured's books and records ?
A.
B.
C.
D.
66.  Which type of loss is a business exposed to death, retirement, resignation, or disability of a key employee?
A.
B.
C.
D.
67.  The applicant wants a homeowners policy that has open peril coverage on his home (building structure).  Assuming he is eligible for the policy, which policy would you recommend ?
A.
B.
C.
D.
68.  What is the limit for sound reproducing equipment under the coverage endorsement for excess sound reproducing equipment, audio, visual and data electronics, tapes, records, disks, and other media endorsement in a PAP ?
A.
B.
C.
D.
69.  The state law that regulates insurer practices regarding underwriting, sales, rate-making and claims handling are called:
A.
B.
C.
D.
70.  Under a building and personal property coverage form, if the insured building has been vacant for more than 60 consecutive days. What effect will this have on a vandalism loss ?
A.
B.
C.
D.
71.  Which of the following is a true statement about CAARP ?
A.
B.
C.
D.
72.  Which exclusion in the causes of loss - special form - excludes coverage for mudflow ?
A.
B.
C.
D.
73.  What additional coverage is provided in a DP3 that is not included in a DP1 ?
A.
B.
C.
D.
74.  The medical expense plan designed to cover a hospital visit for hernia repair is known as:
A.
B.
C.
D.
75.  Why would an inured need an inland marine policy if she is shipping stock on her own trucks ?
A.
B.
C.
D.
76.  A dwelling fire policy's coverage is to a homeowner's policy, as a commercial property policy coverage is to a:
A.
B.
C.
D.
77.  The amount to replace an insured's damaged property, less depreciation, is known as the
A.
B.
C.
D.
78.  Which of the following types of loss would result in a claim for monetary damages due to injury to another or damage to another's property ?
A.
B.
C.
D.
79.  What is the different between the per accident limit in a split limits policy and the single limits ?
A.
B.
C.
D.
80.  Which perils may be excepted from the vacancy permit endorsement ?
A.
B.
C.
D.
81.  If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a persona auto policy ?
A.
B.
C.
D.
82.  If an insured signs a claim form for a claim which is fraudulent, the insured may be guilty of:
A.
B.
C.
D.
83.  When is a fire and casualty agent required to inform an insured of any conditions which may be precedent to coverage regarding a personal auto policy ?
A.
B.
C.
D.
84.  In reference to the coverages provided in the basic form, the boat owner's policy is similar to what other policy ?
A.
B.
C.
D.
85.  If an insured with a personal auto policy has an accident in a state with personal injury protection (PIP), how does the policy respond ?
A.
B.
C.
D.
86.  What is the minimum discount percentage for the "good driver" discount ?
A.
B.
C.
D.
87.  What is the primary difference between umbrella and excess liability policies ?
A.
B.
C.
D.
88.  What additional coverages are available under the scheduled personal property endorsement that is not available under an unendorsed homeowner's policy ?
A.
B.
C.
D.
89.  The intentional relinquishment of a known right is:
A.
B.
C.
D.
90.  The commercial property conditions include a condition called "liberalization". The effect of this condition is:
A.
B.
C.
D.
91.  What does a release bill of lading do for a common carrier ?
A.
B.
C.
D.
92.  What is one reason a person may purchase a dwelling form policy instead of a homeowner's policy ?
A.
B.
C.
D.
93.  An open-peril policy protects against the loss from:
A.
B.
C.
D.
94.  Which of the following types of insurance was designed to cover domestic shipments, means of transportation, personal property floater risks, and commercial property floater risks ?
A.
B.
C.
D.
95.  What is the primary difference between an HO-3 and an HO-5 ?
A.
B.
C.
D.
96.  Which of the following statements is not true ? A fire & casualty managing agent:
A.
B.
C.
D.
97.  In the business of insurance, concealment is defined by all of the following statements, except:
A.
B.
C.
D.
98.  All of the following are characteristics of an "ideally insurable loss exposure", except
A.
B.
C.