Fire & Casualty Practice Exam 5

71 Questions | Total Attempts: 3255

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Fire And Casualty Quizzes & Trivia

Fire & Casualty Practice Exam 5 - For personal use only


Questions and Answers
  • 1. 
    What gives an insured party the right to seek compensation if it is proven that another person with negligence contributed to the injury ?
    • A. 

      Statutory code

    • B. 

      Tort law

    • C. 

      Criminal code

    • D. 

      Case law

  • 2. 
    Surplus lines brokers
    • A. 

      Are always employees of insurance companies

    • B. 

      Transact business only with admitted insurers

    • C. 

      Specialize in marine insurance

    • D. 

      Transact business only with non-admitted insurers

  • 3. 
    Which of the following is an insurer's option when making a loss settlement with the insured under a personal auto policy ?
    • A. 

      Return stolen property to the address shown in the policy

    • B. 

      Have the insured purchaser place the auto at an auto auction

    • C. 

      Demand that the insured first attempt to settle with the responsible party

    • D. 

      Instruct the insured to repair the vehicle at a designated shop

  • 4. 
    What steps need to be taken to terminate a licensee's license that is in the possession of an employer
    • A. 

      The employer must return the license to the licensee, who then must return the license to the insurance commissioner

    • B. 

      The licensee must give written notice to the employer who then sends the license to the insurance commissioner

    • C. 

      The license cannot be terminated prior to the expiration date; it becomes inactive

    • D. 

      The licensee needs to give written notice of intent to the insurance commissioner

  • 5. 
    What will happen when an agent's appointment to an insurance company is terminated and the agent has no other appointments with any other insurance company ?
    • A. 

      The agent's permanent license becomes inactive

    • B. 

      The agent's permanent license remains fully active until expiration

    • C. 

      The agent's permanent license remains in force for only 60 more days unless the agent becomes reappointed or receives a new appointment letter from another insurer

    • D. 

      The agent's permanent license will be terminated simultaneously

  • 6. 
    Which of the following is covered by a building and personal property coverage form (BPP) ?
    • A. 

      A patio

    • B. 

      A bridge

    • C. 

      A light pole

    • D. 

      A dock

  • 7. 
    A physician may have misdiagnosed a patient for terminal cancer.  what type of insurance would protect the physician for this type of mistake ?
    • A. 

      Personal liability

    • B. 

      Professional liability

    • C. 

      Health insurance

    • D. 

      Allied lines insurance

  • 8. 
    What is one of the principle rating factors under Proposition 103 allowed for personal auto policies ?
    • A. 

      Credit record

    • B. 

      Year of the auto

    • C. 

      Safety driving record

    • D. 

      Make of the auto

  • 9. 
    What coverage is available under the named non-owner coverage endorsement ?
    • A. 

      Physical damage and uninsured motorist

    • B. 

      Liability, medical payments, and uninsured motorist

    • C. 

      Liability and physical damage

    • D. 

      Liability only

  • 10. 
    Which of the following is considered special damages ?
    • A. 

      Compensation for a person's emotional suffering

    • B. 

      Compensation for time away from work

    • C. 

      Compensation for loss of a foot

    • D. 

      Compensation for a scar

  • 11. 
    All of the following are mandatory coverages of a business owner's policy, except:
    • A. 

      Extra expense coverage

    • B. 

      Professional liability coverage

    • C. 

      Building coverage

    • D. 

      Business income coverage

  • 12. 
    An agent who diverts premium dollars for the agent's own use is guilty of
    • A. 

      Theft

    • B. 

      Fraud

    • C. 

      Forgery

    • D. 

      Misrepresentation

  • 13. 
    Every admitted insurer in the state of California is required to maintain a unit or disivion to investigate which of the following ?
    • A. 

      Possible non-justifiable discrimination

    • B. 

      Possible fraudulent claims made by insureds

    • C. 

      Possible non-compliance with CA rate laws

    • D. 

      Possible arson claims

  • 14. 
    Which of the following would be considered special damages ?
    • A. 

      Scarring

    • B. 

      Loss of an index finger

    • C. 

      Lost wages

    • D. 

      Pain and suffering

  • 15. 
    Which of the following is a common policy condition for a commercial package policy ?
    • A. 

      Causes of loss

    • B. 

      Duty to defend

    • C. 

      Pro-rata clause

    • D. 

      Inspections and surveys

  • 16. 
    Insurance which covers ship owners against vicarious liability claims due to operating the insured vessel is:
    • A. 

      A voyage policy

    • B. 

      Hull insurance

    • C. 

      The sue and labor laws

    • D. 

      Protection and indemnity insurance

  • 17. 
    Which advisory organization(s) develop forms for the standard market
    • A. 

      National Association of Insurance Commissioners and the American Association of Insurance Services

    • B. 

      Insurance Services Office

    • C. 

      National Association of Insurance Commissioners and the Insurance Services Office

    • D. 

      Insurance Services Office and the American Association of Managing General Agents

  • 18. 
    What is one of the main factors that the insurance Commissioner uses while determining whether a rate is excessive or unfairly discriminatory
    • A. 

      Whether the rate mathematically reflects the insurance company's investment income

    • B. 

      How long the insurer has been admitted to do business in the state

    • C. 

      Complaint history of the insurer by insureds

    • D. 

      The degree of competition

  • 19. 
    Which of the following perils is covered by a causes of loss - basic form
    • A. 

      Governmental action

    • B. 

      War

    • C. 

      Riot or civil commotion

    • D. 

      Ordinance or law

  • 20. 
    The commercial property policy part - " causes of loss - borad form " includes an exclusion for "concurrent causation". The effect of this exclusion is
    • A. 

      If two or more perils happen at the same time to cause a loss, there is no coverage if any of the perils are excluded.

    • B. 

      If two or more perils happen at the same time to cause a loss, there is coverage for all of the damage if any of the perils are not excluded.

    • C. 

      If a loss occurs concurrently with the expiration date of the policy, it is not covered

    • D. 

      If two or more perils happen at the same time to cause a loss, then only the damage caused by one of the perils is covered

  • 21. 
    A health insurance deductible is
    • A. 

      The cost of a covered expense minus a co-payment

    • B. 

      The portion of the insurance premium paid for coverage by the insured

    • C. 

      The insurance payment for health care that is not considered a covered expense

    • D. 

      The amount of covered expense that the insured pays before the insurer pays

  • 22. 
    Which of the following is eligible for a business owner's policy
    • A. 

      An auto repair shop

    • B. 

      A credit union

    • C. 

      A furniture store

    • D. 

      A sports bar

  • 23. 
    All of the following are listed on a commercial general liability declarations page, except
    • A. 

      Medical expense limit

    • B. 

      Rent it to you limit

    • C. 

      Personal advertising injury limit

    • D. 

      Pollution liability limit

  • 24. 
    The term "subrogation" refers to
    • A. 

      The insured's right to receive broadened coverage at no extra charge

    • B. 

      The insurance policy applies separately to each insured

    • C. 

      The insurer's right to recover payment from a responsible 3rd party

    • D. 

      The insurance firm insured's interest in a policy to another party

  • 25. 
    All of the following statements concerning business owner's policies are true, except:
    • A. 

      It allows insurers to individually underwrite the smaller, low-premium policies

    • B. 

      It contains simpler reading which lower handling costs for insurers

    • C. 

      Insureds have the benefit of additional coverages that might otherwise be overlooked

    • D. 

      Insureds have the convenience of one policy that meets most of their needs at a reduced premium cost

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