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Property And Casualty Insurance License Exam Cram

85 Questions  I  By Fsspc
Property and Casualty Insurance License Exam Cram
Property and Casualty Insurance License Exam Cram

  
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1.  The Additional Coverage for collapse is included in which homeowners form(s)?
A.
B.
C.
D.
2.  What is meant by the term "adverse selection"?
A.
B.
C.
D.
3.  When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?
A.
B.
C.
D.
4.  The Excel Insurance Company is incorporated in the state of Tennessee. It is also authorized to do business in Georgia. In Georgia, Excel is known as what type of company?
A.
B.
C.
D.
5.  George accidentally hits Elaine's car with his car. The accident causes $3,000 of damage to Elaine's car, plus Elaine is injured and her medical bills come to $1,000. George's car also sustains $500 damage in the accident, but George isn't hurt. What will George's auto liability coverage pay for?
A.
B.
C.
D.
6.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
7.  The insured knows that it might take several months for his damaged turbine to be fully repaired, so he authorizes $500 for temporary repairs so that production can resume. This expenditure would be covered under which coverage in the Equipment Breakdown Protection coverage form?
A.
B.
C.
D.
8.  Coverage for defense costs is included in which of the following?
A.
B.
C.
D.
9.  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.
10.  When insurance is written on a dwelling form, each of the following types of property would be insured under Coverage A (dwelling coverage) except which one?
A.
B.
C.
D.
11.  Which of the following autos owned by the named insured could be covered under a Personal Auto policy?
A.
B.
C.
D.
12.  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.
13.  Ann's auto was damaged when it was struck by another car whose driver ran a stop sign. Which part of Ann's Personal Auto policy will cover the damage to her car?
A.
B.
C.
D.
14.  Unless a higher limit is shown in the declarations, what is the limit on coverage for business income from dependent properties?
A.
B.
C.
D.
15.  All of the following reduce the CGL's General Aggregate Limit except which of the following?
A.
B.
C.
D.
16.  Walt and Joanna are co-owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that insures the business, with Joanna's name appearing first. The declarations also list First State Bank, which has an outstanding loan on the business. Who is considered a named insured on the policy?
A.
B.
C.
D.
17.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
A.
B.
C.
D.
18.  Which of the following is not one of the common law defenses against an employer's liability?
A.
B.
C.
D.
19.  What type of property is protected under Computer Fraud coverage?
A.
B.
C.
D.
20.  Liability that is imposed as a matter of law without regard to negligence is called what?
A.
B.
C.
D.
21.  Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use?
A.
B.
C.
D.
22.  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.
23.  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.
24.  Under which part of a Workers Compensation and Employers Liability policy would you find a description of employers liability coverage provided?
A.
B.
C.
D.
25.  Which of the following properties can be covered under the Film coverage form? Select all that apply.
A.
B.
C.
D.
26.  Under the NCCI workers compensation and employers liability policy form, the basic, or minimum, limit for employers liability coverage is how much per accident?
A.
B.
C.
D.
27.  Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract?
A.
B.
C.
D.
28.  Which of the following could be considered an uninsured motorist?
A.
B.
C.
D.
29.  A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?
A.
B.
C.
D.
30.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
31.  The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?
A.
B.
C.
D.
32.  The Garage coverage form covers liability arising out of which of the following?
A.
B.
C.
D.
33.  Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?
A.
B.
C.
D.
34.  According to the terms of the Mortgage condition, which of the following does not apply to the rights and duties of the mortgagee?
A.
B.
C.
D.
35.  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.
36.  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.
37.  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.
38.  Under the supplementary payments provided by general liability coverage, when a vehicle to which the bodily injury insurance applies is involved in an accident and bail bonds are required, the insurer will pay up to what amount?
A.
B.
C.
D.
39.  Which Commercial Property Causes of Loss forms cover collapse?
A.
B.
C.
D.
40.  Which of the following individuals have Liability coverage under Mr. Stump's Personal Auto policy?
A.
B.
C.
D.
41.  Policies issued under the National Flood Insurance Program provide removal coverage for property removed to protect it from flood. This coverage applies at another location for up to how many days?
A.
B.
C.
D.
42.  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.
43.  Which one of the following coverages is not included in the BOP?
A.
B.
C.
D.
44.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
A.
B.
C.
D.
45.  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.
46.  Up to what percent of the amount paid for direct loss will the insurance company pay for debris removal expense under the Business and Personal Property coverage form?
A.
B.
C.
D.
47.  A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so?
A.
B.
C.
D.
48.  Mary's Liability coverage limits are 50/100/50. A driver who was injured in an accident caused by Mary obtains a $75,000 judgment against her. Postjudgment interest of $5,000 accrues between the time the judgment was entered by the court and the time the insurer pays. What is the total amount Mary's insurance company will pay for this loss?
A.
B.
C.
D.
49.  An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?
A.
B.
C.
D.
50.  Under the business auto coverage part, each of the following is true about the classifications of covered autos, which are designated by numerical symbols shown in the declarations, except for which of the following?
A.
B.
C.
D.
51.  Which homeowners form provides broad coverage for both the dwelling and its contents?
A.
B.
C.
D.
52.  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.
53.  Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?
A.
B.
C.
D.
54.  Which of the following are contained in the Common Policy Declarations?
A.
B.
C.
D.
55.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
56.  What is the standard deductible for the BOP property coverage?A. $500B. $1,000C. $750D. $250
A.
B.
C.
D.
57.  National flood insurance is available for which of the following?
A.
B.
C.
D.
58.  How often is the insured required to submit reports of values under the Floor Plan coverage form?
A.
B.
C.
D.
59.  The only significant difference between the occurrence and claims-made forms of general liability insurance is found in which of the following?
A.
B.
C.
D.
60.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
61.  Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?
A.
B.
C.
D.
62.  Under liability insurance policies, what does an "aggregate limit" mean?
A.
B.
C.
D.
63.  Which of the following is not a requirement for forming a valid contract?
A.
B.
C.
D.
64.  Which of the following losses are excluded under most Yacht policies?
A.
B.
C.
D.
65.  A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?
A.
B.
C.
D.
66.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
67.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
68.  A homeowner who wants the maximum protection for her home and personal property should purchase the
A.
B.
C.
D.
69.  Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
A.
B.
C.
D.
70.  Which of the following is covered under personal and advertising injury liability coverage in the BOP?
A.
B.
C.
D.
71.  In a Crime insurance policy, certificates of deposit are considered which of the following?
A.
B.
C.
D.
72.  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.
73.  Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
A.
B.
C.
D.
74.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
75.  When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?
A.
B.
C.
D.
76.  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.
77.  All of the following must be present to establish negligence except which one?
A.
B.
C.
D.
78.  Which part of an insurance policy sets the rules of conduct, duties, and obligations of the insured and insurer under the terms of the contract?
A.
B.
C.
D.
79.  What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?
A.
B.
C.
D.
80.  A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?
A.
B.
C.
D.
81.  An agreement between the insured and the insurer that certain conditions will be met is which of the following?
A.
B.
C.
D.
82.  What is meant by a contract of adhesion?
A.
B.
C.
D.
83.  In a competitive state, an employer can obtain workers compensation insurance from which of the following?
A.
B.
C.
D.
84.  The law of large numbers
A.
B.
C.
D.
85.  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.
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