Property And Casualty Insurance License Exam Cram

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

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
2.  An agreement between the insured and the insurer that certain conditions will be met is which of the following?
A.
B.
C.
D.
3.  Which of the following is not one of the duties of an agent?
A.
B.
C.
D.
4.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
5.  Under liability insurance policies, what does an "aggregate limit" mean?
A.
B.
C.
D.
6.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
7.  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.
8.  Which of the following would be excluded under Coverage C of the CGL? Select all that apply.
A.
B.
C.
D.
9.  Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?
A.
B.
C.
D.
10.  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.
11.  Medical Payments coverage provides protection for all of the following except which one?
A.
B.
C.
D.
12.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
A.
B.
C.
D.
13.  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.
14.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
15.  What is meant by the term "adverse selection"?
A.
B.
C.
D.
16.  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?
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.  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?
A.
B.
C.
D.
19.  Which of the following is not a requirement for forming a valid contract?
A.
B.
C.
D.
20.  Which insurance company department is responsible for paying insureds' covered losses?
A.
B.
C.
D.
21.  Solicitors may not
A.
B.
C.
D.
22.  An action that, in a natural and continuous sequence, produces a loss is the
A.
B.
C.
D.
23.  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
A.
B.
C.
D.
24.  Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?
A.
B.
C.
D.
25.  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.
26.  Under most property insurance policies, the policy territory includes which of the following?
A.
B.
C.
D.
27.  In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?
A.
B.
C.
D.
28.  Which of these statements concerning the CPP are correct?
A.
B.
C.
D.
29.  Unless an exception applies, when does coverage under an NFIP policy begin?
A.
B.
C.
D.
30.  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.
31.  An insurer's loss ratio is determined by dividing what?
A.
B.
C.
D.
32.  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.
33.  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.
34.  Which of the following could be considered an uninsured motorist?
A.
B.
C.
D.
35.  Because she has always been in good health, Donna decides to cancel her health insurance policy. This is an example of which risk management method?
A.
B.
C.
D.
36.  What is the consideration that an insurer gives to the insured under an insurance contract?
A.
B.
C.
D.
37.  Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
A.
B.
C.
D.
38.  Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?
A.
B.
C.
D.
39.  When are losses under the Building and Personal Property coverage form paid at replacement or repair cost?
A.
B.
C.
D.
40.  LaTonya purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home? Choose all that apply.
A.
B.
C.
D.
41.  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.
42.  Which of the following represents a pure risk?
A.
B.
C.
D.
43.  A voluntary action to rid the ship of cargo to prevent further damage is called what?
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.  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?
A.
B.
C.
D.
46.  Apparent authority of an insurance agent is the authority
A.
B.
C.
D.
47.  Which of these statements about Coverage C of a homeowners policy are correct?
A.
B.
C.
D.
48.  George is a trash collector earning $35,000 a year who hurts his back on the job, so he can no longer go out with the collection trucks. However, he can still be a route coordinator in the office at a salary of $25,000 per year. To what extent is George industrially disabled?
A.
B.
C.
D.
49.  Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?
A.
B.
C.
D.
50.  An Assigned Risk Plan covers which of the following?
A.
B.
C.
D.
51.  Which of the following perils are covered in the Causes of LossBasic form?
A.
B.
C.
D.
52.  In the homeowners forms,
A.
B.
C.
D.
53.  Which of the following would be covered under the building coverage of the Building and Personal Property coverage form?
A.
B.
C.
D.
54.  Which homeowners form provides broad coverage for both the dwelling and its contents?
A.
B.
C.
D.
55.  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.
56.  The Electronic Data Processing Equipment floater covers what? Select all that apply.
A.
B.
C.
D.
57.  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.
58.  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.
59.  Which of the following would be covered under the business personal property coverage of a BOP?
A.
B.
C.
D.
60.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
61.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
A.
B.
C.
D.
62.  What is the largest office building risk that might be eligible for a BOP?
A.
B.
C.
D.
63.  Which insurance company department is responsible for accepting and rejecting applications based on company standards?
A.
B.
C.
D.
64.  Which of these statements regarding Difference in Conditions insurance are correct?
A.
B.
C.
D.
65.  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.
66.  In legal terms, the actions by one party might have the effect of giving up a known right. When this occurs, the party has created which of the following?
A.
B.
C.
D.
67.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
68.  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.
69.  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.
70.  Which of the following business liability exposures are either excluded altogether from the CGL or covered only in certain circumstances? Select all that apply.
A.
B.
C.
D.
71.  Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?
A.
B.
C.
D.
72.  Which of the following would not normally be excluded under a property insurance contract?
A.
B.
C.
D.
73.  A typical Outboard Motor and Boat policy provides which of the following coverages?
A.
B.
C.
D.
74.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
75.  Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
A.
B.
C.
D.
76.  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.
77.  Which of the following statements apply to Professional Liability policies?
A.
B.
C.
D.
78.  Lee sues Pat for injuries sustained in an auto accident. During the trial, it is determined that Lee's negligence contributed to the loss. Under comparative negligence laws, what can Lee recover?
A.
B.
C.
D.
79.  Which of the following is not true about difference in conditions (DIC) insurance?
A.
B.
C.
D.
80.  Which of the following statements concerning regulation of the insurance industry is correct?
A.
B.
C.
D.
81.  Which of the following properties would not be excluded under the Building and Personal Property coverage form?
A.
B.
C.
D.
82.  Which of the following losses could be covered under the Theatrical Property coverage form?
A.
B.
C.
D.
83.  Coverage for defense costs is included in which of the following?
A.
B.
C.
D.
84.  What is required for an insured's rights and duties under a CPP to be transferred while the insured is alive?
A.
B.
C.
D.
85.  Under a personal auto policy, if an insured already has physical damage coverage for at least one vehicle, a new vehicle will be automatically covered from the date it is acquired as long as the insured notifies the insurer and requests the coverage within how many days?
A.
B.
C.
D.
Back to top


to post comments.

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz