Property And Casualty Insurance License Exam Cram

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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
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D.
2.  Which of these losses is covered under the Jewelers Block coverage form, assuming that the insured has purchased all available optional coverages? Select all that apply.
A.
B.
C.
D.
3.  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?
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B.
C.
D.
4.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
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D.
5.  Which of the following losses could be paid under Uninsured Motorists coverage? (Assume that there are no endorsements attached to the policy.)
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B.
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D.
6.  Who is responsible for licensing insurance agents?
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D.
7.  Which of the following autos owned by the named insured could be covered under a Personal Auto policy?
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B.
C.
D.
8.  Which of the following can be considered covered autos only under the Garage coverage form?
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B.
C.
D.
9.  An insurer's loss ratio is determined by dividing what?
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D.
10.  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?
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B.
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D.
11.  An insurer has subrogation rights under all personal auto policy coverages except which of the following?
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C.
D.
12.  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?
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B.
C.
D.
13.  Which of the following is not true about homeowners personal property coverage?
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B.
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D.
14.  How do deductibles apply in the Equipment Breakdown Protection coverage form?
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D.
15.  Under liability insurance policies, what does the term "personal injury" usually mean?
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D.
16.  Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
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D.
17.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
2 comments
18.  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?
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D.
19.  Something that might increase the likelihood that a loss will occur, is called what?
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D.
20.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
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D.
21.  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?
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B.
C.
D.
2 comments
22.  Which of the following could be considered an uninsured motorist?
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B.
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D.
23.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
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D.
24.  In the event of a physical damage loss that makes a covered auto unavailable for a period of time, a personal auto policy will provide coverage for transportation expenses at the rate of $20 per day up to how much?
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B.
C.
D.
25.  Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.
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B.
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D.
26.  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?
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B.
C.
D.
27.  When the special causes of loss form is attached to a commercial property coverage part, coverage for theft of furs and fur garments is limited to how much?
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D.
28.  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?
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B.
C.
D.
29.  What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?
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B.
C.
D.
30.  To void a policy, misrepresentation or concealment must be which of the following?
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D.
31.  Which of the following is covered under personal and advertising injury liability coverage in the BOP?
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B.
C.
D.
32.  An indirect loss is which of the following?
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D.
33.  Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following except which one?
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B.
C.
D.
34.  Which Commercial Property Causes of Loss forms cover collapse?
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B.
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D.
35.  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?
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D.
36.  Vehicles that might be insured by a personal auto policy are described in the eligibility rules and the policy definitions. Each of the following is true about vehicles eligible for PAP coverage except
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B.
C.
D.
37.  When are losses under the Building and Personal Property coverage form paid at replacement or repair cost?
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D.
38.  Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?
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B.
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D.
39.  The Motor Truck Cargo policy does which of the following?
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D.
40.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
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B.
C.
D.
41.  Which of the following Other Coverages is not included in the Basic Dwelling coverage form?
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B.
C.
D.
42.  A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?
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B.
C.
D.
43.  A commercial building valued at $300,000 is insured for $200,000. If the policy is written with an 80% coinsurance percentage and a standard deductible, how much would be paid for a $60,000 loss?
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B.
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D.
44.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
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B.
C.
D.
45.  An insured must file a proof of loss within how many days after a loss?
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D.
1 comment
46.  Which of the following is not one of the common law defenses against an employer's liability?
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47.  Which of these statements concerning personal liability coverage are correct?
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48.  Which portion of the Garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?
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D.
49.  Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?
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D.
50.  An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?
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D.
51.  Businessowners policies provide an additional coverage for preservation of property when it is removed from the premises to protect it from loss by a covered peril. The coverage will apply at other locations for up to
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D.
52.  If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?
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D.
53.  The Garage coverage form covers liability arising out of which of the following?
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D.
54.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
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D.
55.  Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as
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56.  Which one of the following illustrates the concept of contributory negligence?. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.
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D.
57.  Under the 1989 dwelling policy forms, if coverage for vandalism and malicious mischief is attached to a policy, it will be suspended whenever the building has been vacant for more than how many days?
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D.
58.  The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is
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D.
59.  Which homeowners form provides broad coverage for both the dwelling and its contents?
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D.
60.  Which of the following have special loss valuation requirements under the Building and Personal Property coverage form?
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B.
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D.
61.  Which of the following is covered under the Builders Risk coverage form?
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D.
62.  An agreement between the insured and the insurer that certain conditions will be met is which of the following?
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D.
63.  If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?
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D.
64.  What is the discovery period for coverage of losses under the employee dishonesty optional coverage?
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D.
65.  A homeowner who wants the maximum protection for her home and personal property should purchase the
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D.
66.  Which of the following describes the principle of indemnity?
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D.
67.  Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?
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B.
C.
D.
68.  What is meant by a contract of adhesion?
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D.
69.  In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?
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D.
70.  Under the Earthquake and Volcanic Eruption endorsement, all earthquake shocks or volcanic eruptions that occur within a certain number of hours constitute a single earthquake or volcanic eruption. What is that time period?
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D.
2 comments
71.  Which one of the following injuries qualifies as a compensable injury under workers compensation laws?
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B.
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D.
72.  Which of the following situations would be covered by liability insurance under a personal auto policy?
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B.
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D.
73.  George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?
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B.
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D.
74.  Most liability claims are based on negligence that results in injury or damage. An act of negligence is considered to be a tort. What does the term "tort" mean?
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D.
75.  What is meant by the term "adverse selection"?
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D.
76.  All of the following reduce the CGL's General Aggregate Limit except which of the following?
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B.
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D.
77.  Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?
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B.
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D.
78.  Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?
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D.
79.  Which of the following individuals have Liability coverage under Mr. Stump's Personal Auto policy?
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B.
C.
D.
1 comment
80.  Jake has two insurance policies on his house. They are issued by different companies, but they are otherwise identical. The term for this is
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D.
81.  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?
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B.
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D.
82.  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
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D.
83.  Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?
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B.
C.
D.
84.  Apparent authority of an insurance agent is the authority
A.
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C.
D.
85.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
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