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Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

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1.  Solicitors may not
A.
B.
C.
D.
2.  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.
3.  Which of the following autos owned by the named insured could be covered under a Personal Auto policy?
A.
B.
C.
D.
4.  All of the following must be present to establish negligence except which one?
A.
B.
C.
D.
5.  Which of the following are contained in the Common Policy Declarations?
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.  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.
8.  Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
A.
B.
C.
D.
9.  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.
10.  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.
11.  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.
12.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
13.  The term "time element coverage" is used when the amount of loss depends on which of the following?
A.
B.
C.
D.
14.  Which of these statements about Coverage C of a homeowners policy are correct?
A.
B.
C.
D.
15.  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?
A.
B.
C.
D.
16.  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.
17.  What is meant by the term "adverse selection"?
A.
B.
C.
D.
18.  Which of the following must be true in a burglary?
A.
B.
C.
D.
19.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
20.  Which of the following are excluded under Coverage A of the CGL?
A.
B.
C.
D.
21.  What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
A.
B.
C.
D.
22.  The Motor Truck Cargo policy does which of the following?
A.
B.
C.
D.
23.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
24.  Which of the following individuals have Liability coverage under Mr. Stump's Personal Auto policy?
A.
B.
C.
D.
25.  Which of the following losses would not be excluded under a Basic Dwelling policy form?
A.
B.
C.
D.
26.  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.
27.  Which of the following properties would not be excluded under the Building and Personal Property coverage form?
A.
B.
C.
D.
28.  Which of the following statements apply to Professional Liability policies?
A.
B.
C.
D.
29.  What is meant by a contract of adhesion?
A.
B.
C.
D.
30.  Which of the following is a hazard as opposed to a peril?
A.
B.
C.
D.
31.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
32.  What is the standard deductible under the regular program of the National Flood Insurance Program?
A.
B.
C.
D.
33.  A typical Outboard Motor and Boat policy provides which of the following coverages?
A.
B.
C.
D.
34.  The Additional Coverage for collapse is included in which homeowners form(s)?
A.
B.
C.
D.
35.  Which of these statements concerning Medical Payments to Others coverage are correct?
A.
B.
C.
D.
36.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
37.  Which of these statements concerning the CPP are correct?
A.
B.
C.
D.
38.  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.
39.  Which one of the following coverages is not included in the BOP?
A.
B.
C.
D.
40.  Under a National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis?
A.
B.
C.
D.
41.  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.
42.  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.
43.  Which part of an insurance policy describes what property and/or perils will be covered by the contract?
A.
B.
C.
D.
44.  Which of the following would be considered mobile equipment under the Commercial General Liability coverage form? Select all that apply.
A.
B.
C.
D.
45.  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.
46.  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.
47.  What is the consideration that an insurer gives to the insured under an insurance contract?
A.
B.
C.
D.
48.  Judgment rating is based on which of the following?
A.
B.
C.
D.
49.  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.
50.  Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?
A.
B.
C.
D.
51.  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.
52.  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.
53.  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.
54.  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.
55.  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.
56.  Which of the following losses would be covered under the property coverage of a BOP?
A.
B.
C.
D.
57.  The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?
A.
B.
C.
D.
58.  Which of the following is not excluded under Businessowners Liability coverage?
A.
B.
C.
D.
59.  All of the following reduce the CGL's General Aggregate Limit except which of the following?
A.
B.
C.
D.
60.  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.
61.  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.
62.  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.
63.  Who is responsible for licensing insurance agents?
A.
B.
C.
D.
64.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
A.
B.
C.
D.
65.  Liability that an insured incurs because of the actions of others, such as employees, is called what?
A.
B.
C.
D.
66.  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.
67.  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.
68.  Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?
A.
B.
C.
D.
69.  An insurer has subrogation rights under all personal auto policy coverages except which of the following?
A.
B.
C.
D.
70.  Liability that is imposed as a matter of law without regard to negligence is called what?
A.
B.
C.
D.
71.  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.
72.  Which of the following situations would be covered by liability insurance under a personal auto policy?
A.
B.
C.
D.
73.  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.
74.  What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?
A.
B.
C.
D.
75.  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.
76.  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
A.
B.
C.
D.
77.  Which of these losses is covered under the Signs coverage form? Select all that apply.
A.
B.
C.
D.
78.  Which one of the following is not required in a CGL coverage part?
A.
B.
C.
D.
79.  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.
80.  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.
81.  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.
82.  Which of the following is not true about difference in conditions (DIC) insurance?
A.
B.
C.
D.
83.  Each of the following is true about the National Flood Insurance Program except which one?
A.
B.
C.
D.
84.  Which of these statements concerning personal liability coverage are correct?
A.
B.
C.
D.
85.  Which of the following may be covered under a Farm coverage part?
A.
B.
C.
D.
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