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Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

  
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1.  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.
2.  Which of the following could not be covered under a Dwelling policy?
A.
B.
C.
D.
3.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
4.  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.
5.  The Electronic Data Processing Equipment floater covers what? Select all that apply.
A.
B.
C.
D.
6.  Liability that an insured incurs because of the actions of others, such as employees, is called what?
A.
B.
C.
D.
7.  Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?
A.
B.
C.
D.
8.  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.
9.  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.
10.  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.
11.  What is the standard deductible for the BOP property coverage?A. $500B. $1,000C. $750D. $250
A.
B.
C.
D.
12.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
13.  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.
14.  The written agency contract between an insurer and an agent constitutes the agent's
A.
B.
C.
D.
15.  Which of the following are true about the 60-day basic extended reporting period? Select all that apply.
A.
B.
C.
D.
16.  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.
17.  Which of the following is not a requirement for forming a valid contract?
18.  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.
19.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
20.  Which insurance company department is responsible for paying insureds' covered losses?
A.
B.
C.
D.
21.  Which part of an insurance policy describes what property and/or perils will be covered by the contract?
A.
B.
C.
D.
22.  In most states, workers compensation laws apply to which of the following?
A.
B.
C.
D.
23.  Under the business auto coverage part, liability insurance applies to mobile equipment while which of the following occurs?
A.
B.
C.
D.
24.  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?
A.
B.
C.
D.
25.  In a competitive state, an employer can obtain workers compensation insurance from which of the following?
A.
B.
C.
D.
26.  Which of the following would be eligible for a Personal Auto policy?
A.
B.
C.
D.
27.  Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?
A.
B.
C.
D.
28.  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?
29.  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.
30.  An insured must file a proof of loss within how many days after a loss?
A.
B.
C.
D.
31.  Which of the following describes the principle of indemnity?
A.
B.
C.
D.
32.  Medical Payments coverage provides protection for all of the following except which one?
A.
B.
C.
D.
33.  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.
34.  What is the consideration that an insurer gives to the insured under an insurance contract?
A.
B.
C.
D.
35.  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.
36.  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.
37.  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.
38.  Which of these statements concerning personal liability coverage are correct?
A.
B.
C.
D.
39.  Which of the following losses are excluded under most Yacht policies?
A.
B.
C.
D.
40.  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.
41.  Under which part of a Workers Compensation and Employers Liability policy would you find a description of the insured's obligations when an injury occurs?
A.
B.
C.
D.
42.  What is the discovery period for coverage of losses under the employee dishonesty optional coverage?
A.
B.
C.
D.
43.  Who administers the NFIP?
A.
B.
C.
D.
44.  All of the following must be present to establish negligence except which one?
A.
B.
C.
D.
45.  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.
46.  Which of the following are excluded under Business Auto Liability coverage?
A.
B.
C.
D.
47.  The "ground rules" are described in which part of an insurance policy?
A.
B.
C.
D.
48.  Which of the following are usually excluded under Coverage A of the Commercial General Liability policy? Select all that apply.
A.
B.
C.
D.
49.  Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?
A.
B.
C.
D.
50.  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.
51.  If the named insured acquires a new car that does not replace a previously insured auto, what must the insured do to obtain liability coverage for the auto under her Personal Auto policy from the day it is acquired?
A.
B.
C.
D.
52.  Under liability insurance policies, what does the term "personal injury" usually mean?
A.
B.
C.
D.
53.  The Motor Truck Cargo policy does which of the following?
A.
B.
C.
D.
54.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
A.
B.
C.
D.
55.  Which Commercial Property Causes of Loss forms cover collapse?
A.
B.
C.
D.
56.  An action that, in a natural and continuous sequence, produces a loss is the
A.
B.
C.
D.
57.  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.
58.  National flood insurance is available for which of the following?
A.
B.
C.
D.
59.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
60.  On homeowners policies, "insured location" is a broad term describing where liability coverages apply. It includes each of the following except which one?
A.
B.
C.
D.
61.  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.
62.  Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?
A.
B.
C.
D.
63.  What is the limit on coverage for grave markers under the homeowners policy?
A.
B.
C.
D.
64.  Mobile home policies include which of the following?
A.
B.
C.
D.
65.  Which of the following can be covered under the Physicians and Surgeons Equipment coverage form? Select all that apply.
A.
B.
C.
D.
66.  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.
67.  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
A.
B.
C.
D.
68.  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.
69.  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.
70.  A nonexclusive agent
A.
B.
C.
D.
71.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
72.  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.
73.  The Special Dwelling policy form provides which of the following?
A.
B.
C.
D.
74.  An insurer's loss ratio is determined by dividing what?
A.
B.
C.
D.
75.  Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?
A.
B.
C.
D.
76.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
77.  Unless an exception applies, when does coverage under an NFIP policy begin?
A.
B.
C.
D.
78.  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.
79.  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.
80.  Which of the following Other Coverages is not included in the Basic Dwelling coverage form?
A.
B.
C.
D.
81.  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.
82.  The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?
A.
B.
C.
D.
83.  Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?
A.
B.
C.
D.
84.  What type of property is protected under Computer Fraud coverage?
A.
B.
C.
D.
85.  In the homeowners forms,
A.
B.
C.
D.
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