Property And Casualty Insurance License Exam Cram

85 Questions  I  By Fsspc on February 24, 2009
Property and Casualty Insurance License Exam Cram

  

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1.  A mutual insurance company
A.
B.
C.
D.
2.  Byron sells his car to his friend Annette, but does not notify his insurance company. Assuming that Byron's policy will transfer to her automatically, Annette doesn't buy insurance for the car. When the car is stolen, Annette files a claim with Byron's former insurer. The insurer denies the claim. This is an example of the application of what policy condition?
A.
B.
C.
D.
3.  Who may cancel a CPP?
A.
B.
C.
D.
4.  Which of these statements about Coverage C of a homeowners policy are correct?
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.  Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
A.
B.
C.
D.
7.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
A.
B.
C.
D.
8.  Which of the following represents a pure risk?
A.
B.
C.
D.
9.  Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?
A.
B.
C.
D.
10.  Which of the following are usually excluded under Coverage A of the Commercial General Liability policy? Select all that apply.
A.
B.
C.
D.
11.  What is the time limit for Extended Business Income coverage under the BOP?A. 30 daysB. 45 daysC. 60 daysD. 90 days
A.
B.
C.
D.
12.  An insurer has subrogation rights under all personal auto policy coverages except which of the following?
A.
B.
C.
D.
13.  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.
14.  Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?
A.
B.
C.
D.
15.  Trailer Interchange coverage is included in which of the following forms?
A.
B.
C.
D.
16.  Which of the following is not one of the duties of an agent?
A.
B.
C.
D.
17.  Myrtle has a Dwelling policy with Broad Theft coverage applicable both on and off her premises. Which of the following theft losses would be covered?
A.
B.
C.
D.
18.  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.
19.  The name of the coverage that provides legal liability insurance for damage to customers' autos that are left with the insured for service, repair, or storage is which of the following?
A.
B.
C.
D.
20.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
21.  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
A.
B.
C.
D.
22.  The written agency contract between an insurer and an agent constitutes the agent's
A.
B.
C.
D.
23.  Which of the following losses are excluded under most Yacht policies?
A.
B.
C.
D.
24.  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.
25.  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.
26.  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.
27.  An action that, in a natural and continuous sequence, produces a loss is the
A.
B.
C.
D.
28.  Which of the following properties would not be excluded under the Building and Personal Property coverage form?
A.
B.
C.
D.
29.  Which of these statements regarding Difference in Conditions insurance are correct?
A.
B.
C.
D.
30.  Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?
A.
B.
C.
D.
31.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
32.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
33.  An insurer's loss ratio is determined by dividing what?
A.
B.
C.
D.
34.  Which of the following would be covered under the business personal property coverage of a BOP?
A.
B.
C.
D.
35.  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?
A.
B.
C.
D.
36.  The Special Dwelling policy form provides which of the following?
A.
B.
C.
D.
37.  Judgment rating is based on which of the following?
A.
B.
C.
D.
38.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
39.  Various types of domestic shipments may be covered under a number of inland marine forms. Which of the following is not one of the nonfiled marine forms used to insure domestic shipments?
A.
B.
C.
D.
40.  Which of the following would be considered mobile equipment under the Commercial General Liability coverage form? Select all that apply.
A.
B.
C.
D.
41.  In a competitive state, an employer can obtain workers compensation insurance from which of the following?
A.
B.
C.
D.
42.  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.
A.
B.
C.
D.
43.  What is the consideration that an insurer gives to the insured under an insurance contract?
A.
B.
C.
D.
44.  Under the terms of the Suspension provision in the Equipment Breakdown Protection coverage form, coverage on dangerous equipment can be suspended when?
A.
B.
C.
D.
45.  Which of these statements about the Mail coverage form are correct? Select all that apply.
A.
B.
C.
D.
46.  Which of the following autos owned by the named insured could be covered under a Personal Auto policy?
A.
B.
C.
D.
47.  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.
48.  Which of the following businesses might be covered under a Garage coverage form?
A.
B.
C.
D.
49.  Which of the following statements concerning regulation of the insurance industry is correct?
A.
B.
C.
D.
50.  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.
51.  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.
52.  In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?
A.
B.
C.
D.
53.  Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
A.
B.
C.
D.
54.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
55.  Which one of these statements about the Fair Credit Reporting Act is not correct?
A.
B.
C.
D.
56.  Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?
A.
B.
C.
D.
57.  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.
58.  Which of the following have special loss valuation requirements under the Building and Personal Property coverage form?
A.
B.
C.
D.
59.  Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
A.
B.
C.
D.
60.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
61.  A homeowner who wants the maximum protection for her home and personal property should purchase the
A.
B.
C.
D.
62.  Under liability insurance policies, what does an "aggregate limit" mean?
A.
B.
C.
D.
63.  In a Crime insurance policy, certificates of deposit are considered which of the following?
A.
B.
C.
D.
64.  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.
65.  Which of the following coverage provisions would not be found in an unendorsed Dwelling policy form?
A.
B.
C.
D.
66.  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.
67.  A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?
A.
B.
C.
D.
68.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
69.  Which of the following describes the principle of indemnity?
A.
B.
C.
D.
70.  What is the maximum amount of coverage that can be purchased for a single-family home under the emergency Flood insurance program?
A.
B.
C.
D.
71.  Which one of the following is not required in a CGL coverage part?
A.
B.
C.
D.
72.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
73.  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.
74.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
A.
B.
C.
D.
75.  Coverage for defense costs is included in which of the following?
A.
B.
C.
D.
76.  For how long after the date of a direct physical loss will the insurance company pay for extra expenses under the extra expense additional coverage?
A.
B.
C.
D.
77.  If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?
A.
B.
C.
D.
78.  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.
79.  Which of the following losses would be covered under the property coverage of a BOP?
A.
B.
C.
D.
80.  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?
A.
B.
C.
D.
81.  A voluntary action to rid the ship of cargo to prevent further damage is called what?
A.
B.
C.
D.
82.  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.
83.  Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?
A.
B.
C.
D.
84.  Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?
A.
B.
C.
D.
85.  Which of the following would be covered under the building coverage of a BOP?A. Restroom fixturesB. Photocopy machinesC. Furnishings in the insured's private officeD. Carpets and floor tiles
A.
B.
C.
D.
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Where can i get the answers as well?
I requested access for taking this quiz.. bt didnt recieved any email with password.. Can anyone help me with the password to this quiz?
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How can I get a password to take this test Thanks..Becca
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