Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

  
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1.  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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2.  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?
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B.
C.
D.
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3.  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?
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4.  What is the time limit for Extended Business Income coverage under the BOP?A. 30 daysB. 45 daysC. 60 daysD. 90 days
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5.  Which of the following would be considered mobile equipment under the Commercial General Liability coverage form? Select all that apply.
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6.  In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?
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D.
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7.  If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims under the policy will be extended for how long?
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8.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
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9.  Which of the following business liability exposures are either excluded altogether from the CGL or covered only in certain circumstances? Select all that apply.
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10.  Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
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11.  Under a Personal Umbrella policy, a self-insured retention is an amount that
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12.  Under the Equipment Breakdown Protection coverage form, which of the following causes of damage to covered equipment would not be a covered "breakdown"?
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13.  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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14.  Liability that is imposed as a matter of law without regard to negligence is called what?
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15.  What is the discovery period for coverage of losses under the employee dishonesty optional coverage?
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16.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
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D.
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17.  Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?
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D.
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18.  Which of the following Other Coverages is not included in the Basic Dwelling coverage form?
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D.
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19.  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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D.
20.  Who is responsible for licensing insurance agents?
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21.  What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?
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22.  Which of the following is a hazard as opposed to a peril?
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23.  Unless an exception applies, when does coverage under an NFIP policy begin?
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24.  Under a National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis?
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D.
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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?
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D.
26.  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?
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27.  When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?
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28.  Which of the following can be considered covered autos only under the Garage coverage form?
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29.  Under a personal auto policy, which of the following is not a collision loss?
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30.  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?
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31.  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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D.
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32.  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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33.  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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D.
34.  Which of the following may be covered under a Farm coverage part?
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35.  An action that, in a natural and continuous sequence, produces a loss is the
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36.  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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37.  An insurer's loss ratio is determined by dividing what?
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38.  Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?
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39.  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
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40.  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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41.  Unless a higher limit is shown in the declarations, what is the limit on coverage for business income from dependent properties?
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42.  An insured must file a proof of loss within how many days after a loss?
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43.  An Assigned Risk Plan covers which of the following?
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44.  Which of the following losses are excluded under most Yacht policies?
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45.  Which of the following have special loss valuation requirements under the Building and Personal Property coverage form?
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D.
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46.  The most common definition of actual cash value (ACV) in the property insurance field is which of the following?
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D.
47.  How do deductibles apply in the Equipment Breakdown Protection coverage form?
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48.  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?
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49.  Who administers the NFIP?
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50.  A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?
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D.
51.  A homeowner who wants the maximum protection for her home and personal property should purchase the
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52.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
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D.
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53.  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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54.  When are losses under the Building and Personal Property coverage form paid at replacement or repair cost?
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55.  An agreement between the insured and the insurer that certain conditions will be met is which of the following?
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56.  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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57.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
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58.  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.
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D.
59.  The law of large numbers
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60.  In the homeowners forms,
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61.  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?
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62.  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?
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D.
63.  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.
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64.  Which of these statements concerning personal liability coverage are correct?
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D.
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65.  Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?
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B.
C.
D.
66.  Which one of the following is not required in a CGL coverage part?
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B.
C.
D.
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67.  Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?
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D.
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68.  Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?
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69.  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?
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D.
70.  Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
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D.
71.  Coverage for earthquake losses is which of the following?
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B.
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D.
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72.  National flood insurance is available for which of the following?
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B.
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D.
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73.  Which of the following represents a pure risk?
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D.
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74.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
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D.
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75.  Who of the following would be considered an insured under Business Auto Liability coverage?
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B.
C.
D.
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76.  Which of the following businesses might be covered under a Garage coverage form?
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B.
C.
D.
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77.  A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?
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B.
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D.
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78.  Which of the following properties would not be excluded under the Building and Personal Property coverage form?
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B.
C.
D.
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79.  Which of the following properties can be covered under the Film coverage form? Select all that apply.
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B.
C.
D.
80.  Which one of the following injuries qualifies as a compensable injury under workers compensation laws?
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B.
C.
D.
81.  Which of the following is not true about workers compensation insurance?
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B.
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D.
82.  Which of the following is not excluded under commercial general liability coverage for bodily injury and property damage liability?
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B.
C.
D.
Discuss this Question
83.  What is the purpose of a retroactive date in the claims-made form?
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B.
C.
D.
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