Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

  
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1.  An Assigned Risk Plan covers which of the following?
A.
B.
C.
D.
2.  The Garage coverage form covers liability arising out of which of the following?
A.
B.
C.
D.
3.  A homeowner who wants the maximum protection for her home and personal property should purchase the
A.
B.
C.
D.
4.  Under liability insurance policies, what does the term "personal injury" usually mean?
A.
B.
C.
D.
5.  Each of the following is true about the National Flood Insurance Program except which one?
A.
B.
C.
D.
6.  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.
7.  All of the following types of losses may be covered by the Equipment Breakdown Protection coverage form except which of the following?
A.
B.
C.
D.
8.  Which of the following properties can be covered under the Film coverage form? Select all that apply.
A.
B.
C.
D.
9.  An insured must file a proof of loss within how many days after a loss?
A.
B.
C.
D.
10.  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.
11.  Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?
A.
B.
C.
D.
12.  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.
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.  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.
15.  What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
A.
B.
C.
D.
16.  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.
17.  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.
18.  Which of these statements regarding Difference in Conditions insurance are correct?
A.
B.
C.
D.
19.  Which of the following could not be covered under a Dwelling policy?
A.
B.
C.
D.
20.  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.
21.  Which of the following would be considered mobile equipment under the Commercial General Liability coverage form? Select all that apply.
A.
B.
C.
D.
22.  Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?
A.
B.
C.
D.
23.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
24.  Which dwelling policy forms are named peril forms?
A.
B.
C.
D.
25.  A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so?
A.
B.
C.
D.
26.  Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
A.
B.
C.
D.
27.  Which of the following could be considered an uninsured motorist?
A.
B.
C.
D.
28.  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.
29.  Theft generally means which of the following?
A.
B.
C.
D.
30.  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.
31.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
32.  Mobile home policies include which of the following?
A.
B.
C.
D.
33.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
34.  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.
35.  Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract?
A.
B.
C.
D.
36.  Who administers the NFIP?
A.
B.
C.
D.
37.  Insurance is a mechanism used to manage which of the following types of risk?
A.
B.
C.
D.
38.  How do deductibles apply in the Equipment Breakdown Protection coverage form?
A.
B.
C.
D.
39.  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.
40.  Which of the following describes the principle of indemnity?
A.
B.
C.
D.
41.  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.
42.  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.
43.  Jake has two insurance policies on his house. They are issued by different companies, but they are otherwise identical. The term for this is
A.
B.
C.
D.
44.  Which of the following would be covered under the business personal property coverage of a BOP?
A.
B.
C.
D.
45.  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.
46.  An insurer's loss ratio is determined by dividing what?
A.
B.
C.
D.
47.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
A.
B.
C.
D.
48.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
49.  Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?
A.
B.
C.
D.
50.  The written agency contract between an insurer and an agent constitutes the agent's
A.
B.
C.
D.
51.  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.
52.  Which one of these statements about the Fair Credit Reporting Act is not correct?
A.
B.
C.
D.
53.  The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?
A.
B.
C.
D.
54.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
55.  What is the discovery period for coverage of losses under the employee dishonesty optional coverage?
A.
B.
C.
D.
56.  Which one of the following injuries qualifies as a compensable injury under workers compensation laws?
A.
B.
C.
D.
57.  George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?
A.
B.
C.
D.
58.  Which of the following statements apply to Professional Liability policies?
A.
B.
C.
D.
59.  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.
60.  A breakdown of equipment covered under the Equipment Breakdown Protection coverage form results in the simultaneous breakdown of three other pieces of covered equipment. According to the form, how many "breakdowns" occurred in this loss?
A.
B.
C.
D.
61.  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.
62.  When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?
63.  The term "time element coverage" is used when the amount of loss depends on which of the following?
A.
B.
C.
D.
64.  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.
65.  Which of these statements concerning the CPP are correct?
A.
B.
C.
D.
66.  An employer purchases a fidelity bond to protect against potential losses by employee dishonesty. In this situation, each of the employees covered by the bond is considered which of the following?
A.
B.
C.
D.
67.  Which of the following can be considered covered autos only under the Garage coverage form?
A.
B.
C.
D.
68.  All of the following reduce the CGL's General Aggregate Limit except which of the following?
A.
B.
C.
D.
69.  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.
70.  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.
71.  Which of the following is not a requirement for forming a valid contract?
72.  Which of the following can be covered under the Physicians and Surgeons Equipment coverage form? Select all that apply.
A.
B.
C.
D.
73.  Trailer Interchange coverage is included in which of the following forms?
A.
B.
C.
D.
74.  Policies issued under the National Flood Insurance Program provide removal coverage for property removed to protect it from flood. This coverage applies at another location for up to how many days?
A.
B.
C.
D.
75.  Under which of the Dwelling policy forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?
A.
B.
C.
D.
76.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
77.  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.
78.  Which of the following is a personal and advertising injury?
A.
B.
C.
D.
79.  To avoid problems with underinsurance and overinsurance, a business that has fluctuating inventory values during the year should consider coverage written on
A.
B.
C.
D.
80.  Which of these statements concerning Medical Payments to Others coverage are correct?
A.
B.
C.
D.
81.  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.
82.  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.
83.  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.
84.  An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?
A.
B.
C.
D.
85.  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.
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