Property And Casualty Insurance License Exam Cram

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Property and Casualty Insurance License Exam Cram

  
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1.  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.
2.  Which of the following statements concerning binders is correct?
A.
B.
C.
D.
3.  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.
4.  How do deductibles apply in the Equipment Breakdown Protection coverage form?
A.
B.
C.
D.
5.  Which of the following coverages may be attached to a homeowners policy only by endorsement?
A.
B.
C.
D.
6.  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.
7.  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.
8.  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.
9.  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.
10.  Each of the following is true about the National Flood Insurance Program except which one?
A.
B.
C.
D.
11.  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.
12.  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.
13.  Which of the following would be included in an unendorsed Business Auto coverage policy? Select all that apply.
A.
B.
C.
D.
14.  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.
15.  Trailer Interchange coverage is included in which of the following forms?
A.
B.
C.
D.
16.  Coverage for defense costs is included in which of the following?
A.
B.
C.
D.
17.  All of the following must be present to establish negligence except which one?
A.
B.
C.
D.
18.  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.
19.  Solicitors may not
A.
B.
C.
D.
20.  Which insurance company department is responsible for paying insureds' covered losses?
A.
B.
C.
D.
21.  Which of these statements about Coverage C of a homeowners policy are correct?
A.
B.
C.
D.
22.  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.
23.  Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use?
A.
B.
C.
D.
24.  Under the business auto coverage part, liability insurance applies to mobile equipment while which of the following occurs?
A.
B.
C.
D.
25.  Under a National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis?
A.
B.
C.
D.
26.  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.
Discuss this Question
27.  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.
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28.  An Assigned Risk Plan covers which of the following?
A.
B.
C.
D.
Discuss this Question
29.  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.
Discuss this Question
30.  Which of the following statements concerning Business Auto Liability coverage are correct?
A.
B.
C.
D.
Discuss this Question
31.  Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
A.
B.
C.
D.
32.  Which of the following would be eligible for a Personal Auto policy?
A.
B.
C.
D.
33.  What is meant by a contract of adhesion?
A.
B.
C.
D.
34.  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.
35.  What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?
A.
B.
C.
D.
Discuss this Question
36.  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.
Discuss this Question
37.  Theft generally means which of the following?
A.
B.
C.
D.
38.  How often is the insured required to submit reports of values under the Floor Plan coverage form?
A.
B.
C.
D.
39.  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.
Discuss this Question
40.  Which of the following properties can be covered under the Film coverage form? Select all that apply.
A.
B.
C.
D.
41.  Something that might increase the likelihood that a loss will occur, is called what?
A.
B.
C.
D.
42.  Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?
A.
B.
C.
D.
43.  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.
44.  Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?
A.
B.
C.
D.
Discuss this Question
45.  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.
46.  The Garage coverage form covers liability arising out of which of the following?
A.
B.
C.
D.
Discuss this Question
47.  Which of the following statements applies to Mechanical Breakdown coverage?
A.
B.
C.
D.
48.  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.
49.  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.
50.  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.
51.  Under liability insurance policies, what does an "aggregate limit" mean?
A.
B.
C.
D.
52.  The term "time element coverage" is used when the amount of loss depends on which of the following?
A.
B.
C.
D.
53.  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.
54.  Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?
A.
B.
C.
D.
55.  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.
56.  The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?
A.
B.
C.
D.
57.  Which of the following Commercial Auto coverage forms does not offer liability coverage?
A.
B.
C.
D.
Discuss this Question
58.  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.
59.  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.
60.  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.
61.  Which of the following is not one of the common law defenses against an employer's liability?
A.
B.
C.
D.
Discuss this Question
62.  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.
63.  Which of the following would not normally be excluded under a property insurance contract?
A.
B.
C.
D.
64.  Which one of the following illustrates the concept of contributory negligence?. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.
A.
B.
C.
D.
65.  The Motor Truck Cargo policy does which of the following?
A.
B.
C.
D.
66.  Which of the following could be covered by an unendorsed homeowners policy?
A.
B.
C.
D.
Discuss this Question
67.  Which of the following are usually excluded under Coverage A of the Commercial General Liability policy? Select all that apply.
A.
B.
C.
D.
Discuss this Question
68.  Which of the following situations would be covered by liability insurance under a personal auto policy?
A.
B.
C.
D.
69.  Which of the following is not true about difference in conditions (DIC) insurance?
A.
B.
C.
D.
Discuss this Question
70.  Coverage for earthquake losses is which of the following?
A.
B.
C.
D.
Discuss this Question
71.  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.
72.  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.
73.  Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
A.
B.
C.
D.
Discuss this Question
74.  Who may cancel a CPP?
A.
B.
C.
D.
75.  Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?
A.
B.
C.
D.
76.  In a Crime insurance policy, certificates of deposit are considered which of the following?
A.
B.
C.
D.
77.  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.
78.  Which of the following business liability exposures are either excluded altogether from the CGL or covered only in certain circumstances? Select all that apply.
A.
B.
C.
D.
Discuss this Question
79.  Which of the following losses would be covered under the property coverage of a BOP?
A.
B.
C.
D.
Discuss this Question
80.  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.
81.  Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?
A.
B.
C.
D.
82.  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.
83.  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.
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