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Property And Casualty Insurance License Exam Cram

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Property Management Quizzes & Trivia
Property and casualty insurance license exam cram

  
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1.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
2.  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.
3.  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.
4.  Which of the following is not true about workers compensation insurance?
A.
B.
C.
D.
5.  What is the standard deductible for the BOP property coverage?A. $500B. $1,000C. $750D. $250
A.
B.
C.
D.
6.  Which of the following would be covered under the building coverage of the Building and Personal Property coverage form?
A.
B.
C.
D.
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?
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.  Which of these statements concerning personal liability coverage are correct?
A.
B.
C.
D.
10.  Which of the following would be covered under the business personal property coverage of a BOP?
A.
B.
C.
D.
11.  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.
12.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
13.  Which of the following statements apply to Professional Liability policies?
A.
B.
C.
D.
14.  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.
15.  Under the Equipment Breakdown Protection coverage form, which of the following causes of damage to covered equipment would not be a covered "breakdown"?
A.
B.
C.
D.
16.  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.
17.  Who of the following would be considered an insured under Business Auto Liability coverage?
A.
B.
C.
D.
18.  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.
19.  A business that wants coverage for its liability for employment-related acts can obtain it by purchasing which of the following?
A.
B.
C.
D.
20.  If Coverage C (personal property coverage) is written on a dwelling form, the Other Coverages section of the policy will extend the insurance to provide worldwide personal property coverage for an amount up to which of the following?
A.
B.
C.
D.
21.  The law of large numbers
A.
B.
C.
D.
22.  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.
23.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
24.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
25.  A mutual insurance company
A.
B.
C.
D.
26.  Which of the following is a personal and advertising injury?
A.
B.
C.
D.
27.  Which of the following is a hazard as opposed to a peril?
A.
B.
C.
D.
28.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
29.  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.
30.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
A.
B.
C.
D.
31.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
A.
B.
C.
D.
32.  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.
33.  Which of the following losses could be covered under the Theatrical Property coverage form?
A.
B.
C.
D.
34.  Under a Personal Umbrella policy, a self-insured retention is an amount that
A.
B.
C.
D.
35.  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.
36.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
37.  When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?
A.
B.
C.
D.
38.  Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
A.
B.
C.
D.
39.  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.
40.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
41.  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?
A.
B.
C.
D.
42.  Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?
A.
B.
C.
D.
43.  What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
A.
B.
C.
D.
44.  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.
45.  Which Commercial Property Causes of Loss forms cover collapse?
A.
B.
C.
D.
46.  Under most property insurance policies, the policy territory includes which of the following?
A.
B.
C.
D.
47.  Which one of the following answer choices lists all of the parties to a Surety bond?
A.
B.
C.
D.
48.  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.
49.  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.
50.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
A.
B.
C.
D.
51.  A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?
A.
B.
C.
D.
52.  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?
A.
B.
C.
D.
53.  Which of the following is not one of the common law defenses against an employer's liability?
A.
B.
C.
D.
54.  Which insurance company department is responsible for paying insureds' covered losses?
A.
B.
C.
D.
55.  An indirect loss is which of the following?
A.
B.
C.
D.
56.  Which of the following are excluded under Business Auto Liability coverage?
A.
B.
C.
D.
57.  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.
58.  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?
59.  Which of the following would be eligible for a Personal Auto policy?
A.
B.
C.
D.
60.  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.
61.  Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?
A.
B.
C.
D.
62.  Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?
A.
B.
C.
D.
63.  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.
64.  Which of the following is not one of the duties of an agent?
A.
B.
C.
D.
65.  What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?
A.
B.
C.
D.
66.  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.
67.  Which of the following coverage provisions would not be found in an unendorsed Dwelling policy form?
A.
B.
C.
D.
68.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
69.  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.
A.
B.
C.
D.
70.  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?
A.
B.
C.
D.
71.  In the homeowners forms,
A.
B.
C.
D.
72.  Who administers the NFIP?
A.
B.
C.
D.
73.  Which part of an insurance policy sets the rules of conduct, duties, and obligations of the insured and insurer under the terms of the contract?
A.
B.
C.
D.
74.  How often is the insured required to submit reports of values under the Floor Plan coverage form?
A.
B.
C.
D.
75.  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.
76.  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.
77.  An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?
A.
B.
C.
D.
78.  Which of the following statements concerning regulation of the insurance industry is correct?
A.
B.
C.
D.
79.  Which of the following losses are excluded under most Yacht policies?
A.
B.
C.
D.
80.  A voluntary action to rid the ship of cargo to prevent further damage is called what?
A.
B.
C.
D.
81.  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.
82.  Judgment rating is based on which of the following?
A.
B.
C.
D.
83.  According to the terms of the Mortgage condition, which of the following does not apply to the rights and duties of the mortgagee?
A.
B.
C.
D.
84.  Which Causes of Loss form provides open peril coverage?
A.
B.
C.
D.
85.  Who may cancel a CPP?
A.
B.
C.
D.
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