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.  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.
2.  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.
3.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
4.  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.
5.  Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?
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.  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.
8.  Which of the following situations would be covered by liability insurance under a personal auto policy?
A.
B.
C.
D.
9.  Under a National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis?
A.
B.
C.
D.
10.  The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is
A.
B.
C.
D.
11.  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.
12.  In a Crime insurance policy, certificates of deposit are considered which of the following?
A.
B.
C.
D.
13.  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.
14.  Which of the following are true about the 60-day basic extended reporting period? Select all that apply.
A.
B.
C.
D.
15.  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.
16.  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.
17.  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.
18.  Under a Personal Umbrella policy, a self-insured retention is an amount that
A.
B.
C.
D.
19.  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.
20.  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.
21.  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.
22.  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.
23.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
A.
B.
C.
D.
24.  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.
25.  Which of the following losses could be paid under Uninsured Motorists coverage? (Assume that there are no endorsements attached to the policy.)
A.
B.
C.
D.
26.  A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?
A.
B.
C.
D.
27.  Insurance is a mechanism used to manage which of the following types of risk?
A.
B.
C.
D.
28.  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.
29.  Tom Baxter has an automobile insured by a personal auto policy. He trades in his car and purchases a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will apply automatically for how long?
A.
B.
C.
D.
30.  Which of the following is not excluded under commercial general liability coverage for bodily injury and property damage liability?
A.
B.
C.
D.
31.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
A.
B.
C.
D.
32.  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.
33.  Trailer Interchange coverage is included in which of the following forms?
A.
B.
C.
D.
34.  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.
35.  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.
36.  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.
37.  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.
38.  An insured must file a proof of loss within how many days after a loss?
A.
B.
C.
D.
39.  Liability that an insured incurs because of the actions of others, such as employees, is called what?
A.
B.
C.
D.
40.  What is the standard deductible for the BOP property coverage?A. $500B. $1,000C. $750D. $250
A.
B.
C.
D.
41.  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.
42.  What is the largest office building risk that might be eligible for a BOP?
A.
B.
C.
D.
43.  Which of the following individuals have Liability coverage under Mr. Stump's Personal Auto policy?
A.
B.
C.
D.
44.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
45.  Under a homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for other types of losses?
A.
B.
C.
D.
46.  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.
47.  Solicitors may not
A.
B.
C.
D.
48.  Which of these statements concerning Medical Payments to Others coverage are correct?
A.
B.
C.
D.
49.  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.
50.  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.
51.  Which of the following is not true about difference in conditions (DIC) insurance?
A.
B.
C.
D.
52.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
53.  What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
A.
B.
C.
D.
54.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
55.  A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?
56.  The Garage coverage form covers liability arising out of which of the following?
A.
B.
C.
D.
57.  Under liability insurance policies, what does the term "personal injury" usually mean?
A.
B.
C.
D.
58.  Who administers the NFIP?
A.
B.
C.
D.
59.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
60.  The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?
A.
B.
C.
D.
61.  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.
62.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
63.  In the homeowners forms,
A.
B.
C.
D.
64.  Each of the following is true about the National Flood Insurance Program except which one?
A.
B.
C.
D.
65.  If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?
A.
B.
C.
D.
66.  Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
A.
B.
C.
D.
67.  Which of the following coverages are included in an unendorsed Garage coverage form?
A.
B.
C.
D.
68.  Which Causes of Loss form provides open peril coverage?
A.
B.
C.
D.
69.  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.
70.  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.
71.  The insured knows that it might take several months for his damaged turbine to be fully repaired, so he authorizes $500 for temporary repairs so that production can resume. This expenditure would be covered under which coverage in the Equipment Breakdown Protection coverage form?
A.
B.
C.
D.
72.  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?
A.
B.
C.
D.
73.  Which of the following is not true about workers compensation insurance?
A.
B.
C.
D.
74.  Which of the following describes the principle of indemnity?
A.
B.
C.
D.
75.  Theft generally means which of the following?
A.
B.
C.
D.
76.  Which of these losses is covered under the Signs coverage form? Select all that apply.
A.
B.
C.
D.
77.  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.
78.  Medical Payments coverage provides protection for all of the following except which one?
A.
B.
C.
D.
79.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
80.  Which one of the following is not required in a CGL coverage part?
A.
B.
C.
D.
81.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
82.  The Electronic Data Processing Equipment floater covers what? Select all that apply.
A.
B.
C.
D.
83.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
84.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
85.  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.
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