Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

  
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1.  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.
2.  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.
3.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
A.
B.
C.
D.
4.  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.
5.  The "ground rules" are described in which part of an insurance policy?
A.
B.
C.
D.
6.  What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?
A.
B.
C.
D.
7.  Who of the following would be considered an insured under Business Auto Liability coverage?
A.
B.
C.
D.
8.  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.
9.  Insurance is a mechanism used to manage which of the following types of risk?
A.
B.
C.
D.
10.  Which of the following could be covered by an unendorsed homeowners policy?
A.
B.
C.
D.
11.  Which of the following is a hazard as opposed to a peril?
A.
B.
C.
D.
12.  The Electronic Data Processing Equipment floater covers what? Select all that apply.
A.
B.
C.
D.
13.  Which of the following losses would be covered under the property coverage of a BOP?
A.
B.
C.
D.
14.  Which of the following would be covered under the building coverage of the Building and Personal Property coverage form?
A.
B.
C.
D.
15.  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.
16.  Judgment rating is based on which of the following?
A.
B.
C.
D.
17.  Which of the following losses could be covered under the Theatrical Property coverage form?
A.
B.
C.
D.
18.  Which of these statements about Coverage C of a homeowners policy are correct?
A.
B.
C.
D.
19.  Which Causes of Loss form provides open peril coverage?
A.
B.
C.
D.
20.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
A.
B.
C.
D.
21.  Which one of these statements about the Fair Credit Reporting Act is not correct?
A.
B.
C.
D.
22.  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.
23.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
24.  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.
25.  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.
26.  A mutual insurance company
A.
B.
C.
D.
27.  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.
28.  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.
29.  Which of the following businesses might be covered under a Garage coverage form?
A.
B.
C.
D.
30.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
A.
B.
C.
D.
31.  Which one of the following coverages is not included in the BOP?
A.
B.
C.
D.
32.  What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?
A.
B.
C.
D.
33.  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.
34.  Which of the following is not true about insurance binders?
A.
B.
C.
D.
35.  Medical Payments coverage provides protection for all of the following except which one?
A.
B.
C.
D.
36.  Theft generally means which of the following?
A.
B.
C.
D.
37.  What type of property is protected under Computer Fraud coverage?
A.
B.
C.
D.
38.  Which of the following could be considered an uninsured motorist?
A.
B.
C.
D.
39.  Apparent authority of an insurance agent is the authority
A.
B.
C.
D.
40.  Claims that are paid by general liability coverage are charged against the aggregate policy limits and reduce the amount of insurance remaining to pay future claims. However, CGL aggregate limits will be reinstated in full
A.
B.
C.
D.
41.  The most common definition of actual cash value (ACV) in the property insurance field is which of the following?
A.
B.
C.
D.
42.  Under the 1989 dwelling policy forms, if coverage for vandalism and malicious mischief is attached to a policy, it will be suspended whenever the building has been vacant for more than how many days?
A.
B.
C.
D.
43.  Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
A.
B.
C.
D.
44.  All of the following must be present to establish negligence except which one?
A.
B.
C.
D.
45.  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?
A.
B.
C.
D.
46.  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.
47.  Coverage for earthquake losses is which of the following?
A.
B.
C.
D.
48.  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.
49.  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.
50.  Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?
A.
B.
C.
D.
51.  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.
52.  Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?
A.
B.
C.
D.
53.  Which of the following are true about the 60-day basic extended reporting period? Select all that apply.
A.
B.
C.
D.
54.  Which of the following are excluded under Business Auto Liability coverage?
A.
B.
C.
D.
55.  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.
56.  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.
57.  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.
58.  Which of the following is not excluded under commercial general liability coverage for bodily injury and property damage liability?
A.
B.
C.
D.
59.  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.
60.  How often is the insured required to submit reports of values under the Floor Plan coverage form?
A.
B.
C.
D.
61.  Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?
A.
B.
C.
D.
62.  Which of the following is not a requirement for forming a valid contract?
63.  Who of the following would be considered custodians while having care and custody of company property inside the premises?
A.
B.
C.
D.
64.  The Motor Truck Cargo policy does which of the following?
A.
B.
C.
D.
65.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
66.  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.
67.  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.
68.  Which of the following losses would be excluded under the Building and Personal Property coverage form if the insured building had been vacant for more than 60 days before the loss occurred?
A.
B.
C.
D.
69.  An insurer's loss ratio is determined by dividing what?
A.
B.
C.
D.
70.  In a competitive state, an employer can obtain workers compensation insurance from which of the following?
A.
B.
C.
D.
71.  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.
72.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
73.  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.
74.  Which of these statements about the Mail coverage form are correct? Select all that apply.
A.
B.
C.
D.
75.  Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?
A.
B.
C.
D.
76.  Which of the following situations would be covered by liability insurance under a personal auto policy?
A.
B.
C.
D.
77.  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.
78.  Which of these statements concerning personal liability coverage are correct?
A.
B.
C.
D.
79.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
80.  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.
81.  Which of these losses is covered under the Signs coverage form? Select all that apply.
A.
B.
C.
D.
82.  The insured's business sustains $25,000 damage in a fire. The fire department that was called to the scene billed the insured $1,000. The business is insured under the Building and Personal Property coverage form for $500,000 with a $5,000 deductible. How much will the insurance company pay for this loss?
A.
B.
C.
D.
83.  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.
84.  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.
85.  When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?
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