Fire & Casualty Practice Exam 5
Fire & Casualty Practice Exam 5 - For personal use only
- 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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