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Property And Casualty Insurance License Exam Cram

85 Questions  I  By Fsspc
Property Management Quizzes & Trivia
Property and Casualty Insurance License Exam Cram

  
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1.  Claims that are paid by general liability coverage are charged against the aggregate policy limits and reduce the amount of insurance remaining to pay future claims. However, CGL aggregate limits will be reinstated in full
A.
B.
C.
D.
2.  To void a policy, misrepresentation or concealment must be which of the following?
A.
B.
C.
D.
3.  Which of the following is a hazard as opposed to a peril?
A.
B.
C.
D.
4.  Which part of an insurance policy describes what property and/or perils will be covered by the contract?
A.
B.
C.
D.
5.  Which Causes of Loss form provides open peril coverage?
A.
B.
C.
D.
6.  Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to how many days?
A.
B.
C.
D.
7.  Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?
A.
B.
C.
D.
8.  Renata's home is demolished in a fire that started when a neighbor misdirected the fireworks he set off to celebrate the Fourth of July. Renata's insurance company pays her for the damage, and then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?
A.
B.
C.
D.
9.  What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?
A.
B.
C.
D.
10.  A voluntary action to rid the ship of cargo to prevent further damage is called what?
A.
B.
C.
D.
11.  Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following except which one?
A.
B.
C.
D.
12.  Which homeowners form provides broad coverage for both the dwelling and its contents?
A.
B.
C.
D.
13.  The Special Dwelling policy form provides which of the following?
A.
B.
C.
D.
14.  An action that, in a natural and continuous sequence, produces a loss is the
A.
B.
C.
D.
15.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
16.  Which one of the following coverages is not included in the BOP?
A.
B.
C.
D.
17.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
18.  A breakdown of equipment covered under the Equipment Breakdown Protection coverage form results in the simultaneous breakdown of three other pieces of covered equipment. According to the form, how many "breakdowns" occurred in this loss?
A.
B.
C.
D.
19.  Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?
A.
B.
C.
D.
20.  The Motor Truck Cargo policy does which of the following?
A.
B.
C.
D.
21.  Which of the following losses could be paid under Uninsured Motorists coverage? (Assume that there are no endorsements attached to the policy.)
A.
B.
C.
D.
22.  J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees' medical expenses out of a fund specifically created for this purpose. This is an example of
A.
B.
C.
D.
23.  Which of the following can be considered covered autos only under the Garage coverage form?
A.
B.
C.
D.
24.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
25.  A nonexclusive agent
A.
B.
C.
D.
26.  To avoid problems with underinsurance and overinsurance, a business that has fluctuating inventory values during the year should consider coverage written on
A.
B.
C.
D.
27.  Which of the following Other Coverages is not included in the Basic Dwelling coverage form?
A.
B.
C.
D.
28.  Which of the following are excluded under Business Auto Liability coverage?
A.
B.
C.
D.
29.  The Johnsons' home is covered by a Special Dwelling policy. When a fire damages the home, the family is forced to stay at a motel for a month while repairs are made. What coverage might reimburse them for these expenses?
A.
B.
C.
D.
30.  Which of the following are usually excluded under Coverage A of the Commercial General Liability policy? Select all that apply.
A.
B.
C.
D.
31.  Which of these losses is covered under the Signs coverage form? Select all that apply.
A.
B.
C.
D.
32.  Which of the following properties would not be excluded under the Building and Personal Property coverage form?
A.
B.
C.
D.
33.  Which of the following are true about the 60-day basic extended reporting period? Select all that apply.
A.
B.
C.
D.
34.  Which of the following losses would be covered under the property coverage of a BOP?
A.
B.
C.
D.
35.  An insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries $60,000 of insurance. Following a loss, the determined is made that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000?
A.
B.
C.
D.
36.  The most common definition of actual cash value (ACV) in the property insurance field is which of the following?
A.
B.
C.
D.
37.  Which of the following have special loss valuation requirements under the Building and Personal Property coverage form?
A.
B.
C.
D.
38.  If Coverage C (personal property coverage) is written on a dwelling form, the Other Coverages section of the policy will extend the insurance to provide worldwide personal property coverage for an amount up to which of the following?
A.
B.
C.
D.
39.  If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims under the policy will be extended for how long?
A.
B.
C.
D.
40.  Which of the following is not excluded under commercial general liability coverage for bodily injury and property damage liability?
A.
B.
C.
D.
41.  Commercial insureds who need more Liability coverage than provided by a certain policy or want coverage for losses excluded by a certain policy should purchase which of the following?
A.
B.
C.
D.
42.  Coverage for earthquake losses is which of the following?
A.
B.
C.
D.
43.  An indirect loss is which of the following?
A.
B.
C.
D.
44.  Which one of the following answer choices lists all of the parties to a Surety bond?
A.
B.
C.
D.
45.  Which of the following losses would be excluded under the Building and Personal Property coverage form if the insured building had been vacant for more than 60 days before the loss occurred?
A.
B.
C.
D.
46.  A woman is injured when she breaks a tooth on a rock that mysteriously found its way into a box of cereal. This is an example of which of the following?
A.
B.
C.
D.
47.  Which insurance company department is responsible for paying insureds' covered losses?
A.
B.
C.
D.
48.  Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
A.
B.
C.
D.
49.  If the insurance company requests a proof of loss on a Commercial Inland Marine claim, the insured must submit it within how many days?
A.
B.
C.
D.
50.  Under a homeowners policy, in addition to any payments for damages awarded against an insured, the insurance company will reimburse the insured for reasonable expenses incurred at the company's request, including loss of earnings of up to how many days?
A.
B.
C.
D.
51.  Which of the following is not one of the duties of an agent?
A.
B.
C.
D.
52.  Liability that is imposed as a matter of law without regard to negligence is called what?
A.
B.
C.
D.
53.  The Garage coverage form covers liability arising out of which of the following?
A.
B.
C.
D.
54.  Under the Appraisal condition, the insured and the insurance company each chooses an appraiser. If the appraisers do not agree, the dispute is submitted to a third individual agreed upon jointly by the insured and the insurance company. That third party is called the
A.
B.
C.
D.
55.  What is the limit on coverage for grave markers under the homeowners policy?
A.
B.
C.
D.
56.  At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system?
A.
B.
C.
D.
57.  A homeowner who wants the maximum protection for her home and personal property should purchase the
A.
B.
C.
D.
58.  The Additional Coverage for collapse is included in which homeowners form(s)?
A.
B.
C.
D.
59.  Which of the following can be covered under the Physicians and Surgeons Equipment coverage form? Select all that apply.
A.
B.
C.
D.
60.  Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?
A.
B.
C.
D.
61.  Under homeowners coverage for medical payments to others, necessary medical expenses for treating an accidental injury will be covered if it incurred within how many days?
A.
B.
C.
D.
62.  Under a personal auto policy, which of the following is not a collision loss?
A.
B.
C.
D.
63.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
64.  Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?
A.
B.
C.
D.
65.  Deirdre has a complete 12-piece tea service valued at $20,000. In an explosion covered by her insurance policy, most of the tea service comes through intact, but one of the tea cups is broken beyond repair. The cup by itself would be valued at $400, but the value of Deirdre's tea service without the broken cup is $17,000. How much will Deirdre's insurance company pay for the broken cup?
66.  Which portion of the Garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?
A.
B.
C.
D.
67.  Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?
A.
B.
C.
D.
68.  When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?
69.  Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?
A.
B.
C.
D.
70.  All of the following types of losses may be covered by the Equipment Breakdown Protection coverage form except which of the following?
A.
B.
C.
D.
71.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
72.  As a result of a successful lawsuit, Agnes receives $10,000 to cover her specific losses, an additional $40,000 for pain and suffering, and because the defendant was considered to have acted with willful disregard for others' safety, Agnes was awarded an additional $75,000. This additional $75,000 award can best be described as what type of damages?
A.
B.
C.
D.
73.  An Assigned Risk Plan covers which of the following?
A.
B.
C.
D.
74.  Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
A.
B.
C.
D.
75.  If coverage for towing and labor costs is included in a personal auto policy, labor costs will be covered only if the labor is performed
A.
B.
C.
D.
76.  Which of these statements concerning Medical Payments to Others coverage are correct?
A.
B.
C.
D.
77.  Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?
A.
B.
C.
D.
78.  Under which of the Dwelling policy forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?
A.
B.
C.
D.
79.  What is meant by a contract of adhesion?
A.
B.
C.
D.
80.  The insured's policy is nearing the expiration date. The insurance company doesn't want to continue the insured's coverage, so it sends the insured a notice that the policy will not continue beyond the expiration date of the policy. This is considered which of the following?
A.
B.
C.
D.
81.  The term "time element coverage" is used when the amount of loss depends on which of the following?
A.
B.
C.
D.
82.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
83.  Insurance is a mechanism used to manage which of the following types of risk?
A.
B.
C.
D.
84.  Which of the following is covered under personal and advertising injury liability coverage in the BOP?
A.
B.
C.
D.
85.  Under a homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for other types of losses?
A.
B.
C.
D.
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