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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.  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.
2.  Which of the following would be covered under the business personal property coverage of a BOP?
A.
B.
C.
D.
3.  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.
4.  An agreement between the insured and the insurer that certain conditions will be met is which of the following?
A.
B.
C.
D.
5.  What is the purpose of a retroactive date in the claims-made form?
A.
B.
C.
D.
6.  A nonexclusive agent
A.
B.
C.
D.
7.  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.
8.  Coverage for earthquake losses is which of the following?
A.
B.
C.
D.
9.  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.
10.  Which of these statements regarding Difference in Conditions insurance are correct?
A.
B.
C.
D.
11.  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.
12.  Which of the following losses would be excluded under Part D of a Personal Auto policy?
A.
B.
C.
D.
13.  An insured must file a proof of loss within how many days after a loss?
A.
B.
C.
D.
14.  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.
15.  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.
16.  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.
17.  Which Commercial Property Causes of Loss forms cover collapse?
A.
B.
C.
D.
18.  When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?
A.
B.
C.
D.
19.  The "ground rules" are described in which part of an insurance policy?
A.
B.
C.
D.
20.  The Electronic Data Processing Equipment floater covers what? Select all that apply.
A.
B.
C.
D.
21.  How do deductibles apply in the Equipment Breakdown Protection coverage form?
A.
B.
C.
D.
22.  The Johnsons' home is covered by a Special Dwelling policy. When a fire damages the home, the family is forced to stay at a motel for a month while repairs are made. What coverage might reimburse them for these expenses?
A.
B.
C.
D.
23.  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.
24.  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.
25.  A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?
A.
B.
C.
D.
26.  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.
27.  Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?
A.
B.
C.
D.
28.  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.
29.  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.
30.  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.
31.  What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?
A.
B.
C.
D.
32.  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.
33.  Unless a higher limit is shown in the declarations, what is the limit on coverage for business income from dependent properties?
A.
B.
C.
D.
34.  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.
35.  An Assigned Risk Plan covers which of the following?
A.
B.
C.
D.
36.  Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.
A.
B.
C.
D.
37.  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.
38.  A homeowner who wants the maximum protection for her home and personal property should purchase the
A.
B.
C.
D.
39.  National flood insurance is available for which of the following?
A.
B.
C.
D.
40.  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.
41.  Which of the following is covered under the Builders Risk coverage form?
A.
B.
C.
D.
42.  Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
A.
B.
C.
D.
43.  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.
44.  Which of these statements concerning personal liability coverage are correct?
A.
B.
C.
D.
45.  Which of the following coverages are provided by Business Auto Physical Damage coverage?
A.
B.
C.
D.
46.  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.
47.  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.
48.  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.
49.  Which one of the following injuries qualifies as a compensable injury under workers compensation laws?
A.
B.
C.
D.
50.  The term "time element coverage" is used when the amount of loss depends on which of the following?
A.
B.
C.
D.
51.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
52.  Which of the following losses could be covered under the Theatrical Property coverage form?
A.
B.
C.
D.
53.  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.
54.  What is the standard deductible under the regular program of the National Flood Insurance Program?
A.
B.
C.
D.
55.  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.
56.  Which of the following describes the principle of indemnity?
A.
B.
C.
D.
57.  The written agency contract between an insurer and an agent constitutes the agent's
A.
B.
C.
D.
58.  Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?
A.
B.
C.
D.
59.  What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?
A.
B.
C.
D.
60.  Who may cancel a CPP?
A.
B.
C.
D.
61.  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.
62.  What is meant by the term "adverse selection"?
A.
B.
C.
D.
63.  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.
64.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
A.
B.
C.
D.
65.  Adequate coverage for large, powerful boats is provided by which of the following?
A.
B.
C.
D.
66.  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.
67.  A mutual insurance company
A.
B.
C.
D.
68.  A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?
A.
B.
C.
D.
69.  Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?
A.
B.
C.
D.
70.  Which of these statements about Coverage C of a homeowners policy are correct?
A.
B.
C.
D.
71.  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.
72.  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.
73.  Under which part of a Workers Compensation and Employers Liability policy would you find a description of employers liability coverage provided?
A.
B.
C.
D.
74.  The Additional Coverage for collapse is included in which homeowners form(s)?
A.
B.
C.
D.
75.  Mobile home policies include which of the following?
A.
B.
C.
D.
76.  Which of the following is not true about difference in conditions (DIC) insurance?
A.
B.
C.
D.
77.  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.
78.  Which one of these statements about the Fair Credit Reporting Act is not correct?
A.
B.
C.
D.
79.  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.
80.  Which of the following are excluded under Business Auto Liability coverage?
A.
B.
C.
D.
81.  Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?
A.
B.
C.
D.
82.  Consuela's Homeowners policy has an 80% Coinsurance condition. Her home's value is $125,000. What is the minimum amount of coverage she must carry to avoid a coinsurance penalty for partial losses?
A.
B.
C.
D.
83.  Which of the following is covered under personal and advertising injury liability coverage in the BOP?
A.
B.
C.
D.
84.  Under liability insurance policies, what does an "aggregate limit" mean?
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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