Fire & Casualty Practice Exam #1

148 Questions | Total Attempts: 4327

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Fire & Casualty Practice Exam #1 - Quiz

Practice exam for fire & casualty. 150 questions3 hour time limit.


Questions and Answers
  • 1. 
    In an insurance policy, which page contains the rights and duties of both parties involved in the contract?
    • A. 

      Declarations

    • B. 

      Conditions

    • C. 

      Insuring Agreement

    • D. 

      Exclusions

  • 2. 
    Which of the following terms refers to how much the property (usually a home) would be bought for on the market?
    • A. 

      Replacement cost

    • B. 

      Actual Cash Value

    • C. 

      Market Value

    • D. 

      Agreed Value

  • 3. 
    The modular concept refers to:
    • A. 

      Parts of a package policy

    • B. 

      Endorsements within a package policy

    • C. 

      The declarations and conditions section of a package policy

    • D. 

      A monoline policy

  • 4. 
    Which of the following is not associated with the word insurance?
    • A. 

      Tansferring risk

    • B. 

      Indemnify

    • C. 

      Known event

    • D. 

      Written contract

  • 5. 
    Which of the following is a basis provision of all property policies for property that can't be moved, such as ahouse and sends payment to the insured as well as the lien holder in the event of a loss?
    • A. 

      Concurrent Policy Coverage

    • B. 

      Standard Mortgage Clause

    • C. 

      Special Lines Surplus Lines

    • D. 

      Uniform Insurers Rehabiliation Act

  • 6. 
    A policy of liability insurance issued to a local public entity or state agency as a named insured shall not be cancelled or have renewal declined for reasons other than nonpayment of premium unless notice is mailed to the named insured at least _____ days prior to the effective date or nonrenewal of at least _____ days prior to the effective date of cancellation.
    • A. 

      15/30

    • B. 

      30/45

    • C. 

      45/60

    • D. 

      60/90

  • 7. 
    The insurer may examine books and records of an insured:
    • A. 

      Annually

    • B. 

      Only after 30 days notice to the insured

    • C. 

      Only with the consent of the insured

    • D. 

      At any time and for up to three years after the policy expires

  • 8. 
    Which is not a reason for a company to obtain reinsurance?
    • A. 

      Protect companies form major losses

    • B. 

      Share the risk with another company

    • C. 

      Protect companies from catastrophic losses

    • D. 

      Share in the loss ration with another company

  • 9. 
    Under the standard fire policy, a fire that was intentionally started in an area such as a fireplace is known as:
    • A. 

      Intentional fire

    • B. 

      Unintentional fire

    • C. 

      Hostile fire

    • D. 

      Friendly fire

  • 10. 
    Which of the following Homeowners policies covers a home that was built 75 years ago?
    • A. 

      HO 1

    • B. 

      HO 2

    • C. 

      HO 4

    • D. 

      HO 8

  • 11. 
    The declarations page of a commercial policy will state which of the following:
    • A. 

      Premium amount and coverage limits

    • B. 

      Named insureds

    • C. 

      Covered property

    • D. 

      All of the above

  • 12. 
    Johnny told the insurace agent he thing he drives about 10,000 miles a year, but in fact it's more like 15,000 miles. What term would best describe this situation?
    • A. 

      Fraud

    • B. 

      Concealment

    • C. 

      Misrepresentation

    • D. 

      Misstated fact

  • 13. 
    What does an HO 6 cover?
    • A. 

      The tenants personal property, loss of use and liability exposures in renter's insurance.

    • B. 

      Covers perils to condominium units and the exposure of liability, as wee as loss assessment coverage.

    • C. 

      An HO 6 is coverage by the broad form perils.

    • D. 

      Covers all risks except those excluded

  • 14. 
    Which of the following Homeowner's policies have both dwelling and person property on a broad peril form?
    • A. 

      HO 2, HO 4, HO 5

    • B. 

      HO 2, HO5, HO 8

    • C. 

      HO 4, HO 5, HO 6

    • D. 

      HO 2, HO 6

  • 15. 
    On a Commerical package policy, "you" and "your" refer to:
    • A. 

      Any person with financial interest in the property

    • B. 

      The named insured and resident spouse

    • C. 

      An individual, corporation or other entity

    • D. 

      All of the above

  • 16. 
    All the following are part of the six specs of an insurance policy except:
    • A. 

      The parties between whom the contract is made

    • B. 

      Duties of an insured after a claim

    • C. 

      Statement of the premium

    • D. 

      The risks insured agains

  • 17. 
    When can insurers include an expense factor added to the premium charged for a class of policies?
    • A. 

      When the insurer is running low of reserve funds

    • B. 

      Anytime the insurer wants to

    • C. 

      When there is insufficient premium to cover the cost of issuing insurance

    • D. 

      When the claim is more than the premium within the first 6 months of issuing the policy

  • 18. 
    At the time of all appointments being terminated (after all fees paid and education requirements have been fulfilled) the agent's license:
    • A. 

      Terminates

    • B. 

      Becomes inactive

    • C. 

      Terminates after 10 days

    • D. 

      Becomes inactive after 30 days

  • 19. 
    Which of the following is not covered property under a Builders Risk form?
    • A. 

      Scaffoldings

    • B. 

      Lumber and other building supplies

    • C. 

      Temporary structures on the premises

    • D. 

      Trees, plants and shrubs

  • 20. 
    Who has the ability to legally bind insurance for the insurer?
    • A. 

      Insurance Broker

    • B. 

      Insurance Agent

    • C. 

      Insurance Solicitor

    • D. 

      Insurance Administrator

  • 21. 
    All of the following are examples of being a good agent for your client except:
    • A. 

      Stay up to date with clients and contact them periodically

    • B. 

      Go above and beyond with the service you provide for your client

    • C. 

      Make important decisions about the policy for clients without consulting and bothering them

    • D. 

      Know your job and strive to learn all there is about your job so you can be an effective agent

  • 22. 
    An insurance company that has met all the qualifications designed by the Department of Insurance and has received a Certificate of Authority from the DOI to trasact insurance in this state is known as:
    • A. 

      A domestic insurer

    • B. 

      A foreign insurer

    • C. 

      An admitted insurer

    • D. 

      A non-admitted insurer

  • 23. 
    Coverage A of the Commercial Building and Personal Property coverage form covers which of the following:
    • A. 

      Buildings and Separate Structures

    • B. 

      Personal Property

    • C. 

      A riding lawn mower

    • D. 

      Both A & C are true

  • 24. 
    Which is not a power of a Managing General Agent?
    • A. 

      Accept or decline risks

    • B. 

      Collect premium moneys for producing brokers/agents

    • C. 

      Underwrites gross direct written premium equal to or more than 10% of the policyholder surplus

    • D. 

      Appoints local agents in that territory

  • 25. 
    Which of the following describes an Alien Insurer?
    • A. 

      An insurance company that is incorporated outside the United States

    • B. 

      An insurance company thas is incorporated in California

    • C. 

      An insurance company that is incorporated in another state

    • D. 

      An insurance company that is incorporated outside of the principal city

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