Property and Casualty Insurance Exam With
100% Correct Solutions
An organization that writes liability insurance to cover the liability exposure for the
mining engineers that belong to its associations is: - Answer A Risk Retention Group
Which of the following parties may assign a standard property policy? - Answer The
insurer with prior written permission of the insurer
The Difference in Conditions Policy is a special form used to fill in gaps of a property
policy. Which of the following is true regarding this policy? - Answer It is generally
written on an open perils basis, excluding losses by perils that are covered under
standard property forms
Under Part A of a Personal Auto policy, which of the following losses would be covered?
- Answer Damage to a neighbor's parked car
Assumption of Risk - Answer Not an element of negligence
Which of the following coverages is not provided by the Personal Liability Supplement? -
Answer Medical payments to a regular resident of the dwelling who sustains an injury
Truckers Coverage Form - Answer Covers business exposures of motor carriers for hire
who transport the goods of others, rather than its own goods.
Under a Homeowners policy, how much coverage is provided for theft or unauthorized
use of a credit or debit card? - Answer 500
Valuation Clause - Answer A condition under a Building and Personal Property Coverage
Form that determines how losses will be paid?
Discovery Form - Answer A crime for that requires the use of a Retroactive Date
The Farm Liability Policy WOULD NOT cover? - Answer A neighbor who is accidentally
hurt on the insured's farm makes a claim for medical payments 4 years after suffering
injury
False Advertising - Answer It is an unfair trade practice to present any information that is
misleading about any insurer in the conduct of their insurance business.
The Personal Liability endorsement DOES NOT provide coverage for which of the
following? - Answer Injury caused to a regular resident of the dwelling.
The Additional Coverages part of a property insurance policy provides: - Answer
,Coverage automatically included in the policy to supplement the basic coverages in the
Insuring Agreement without an additional premium
Premises liability exposure - Answer Not a contingent liability exposure
Part D of the Personal Auto Policy provides which of the following coverages? - Answer
Coverage for Damage to Your Auto
Which statement about the Builders Risk form is NOT correct? - Answer Coverage is
always written on an open peril basis
Which of the following statements about a property policy is false? - Answer The purpose
of coinsurance is to have the insure retain part of the risk
A Broad Form Homeowners policy would NOT cover which of the following losses? -
Answer Water damage to personal property stored in the basement after a sump pump
overflows
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include:
- Answer A family member, occupying an insured auto struck by an uninsured vehicle
Combined single limits - Answer The policy liability limits that may be applied to either
bodily injury or property damage, in any combination
Which of the following is NOT one of the limits of liability provided by the CGL? - Answer
Bodily injury limit
A person operating a motor vehicle who is not able to provide current proof of financial
responsibility in the vehicle when requested by a Nebraska law enforcement officer is
allowed _____ days to prove that financial responsibility was in effect at the time of the
request. - Answer 10
Which coverage is NOT an Additional Coverage under the Businessowners Coverage
Form? - Answer Equipment breakdown
Section II of a Homeowners policy may cover which of the following incidents? - Answer
Bodily injury to a stranger, caused by an insured's activities while picnicking at a city
park
The insured is part of a homeowners association. After a property loss to the common
area owned by all of the association's members, the insured is assessed $1,500 for the
damages. The insured's Homeowners policy will provide: - Answer $1,000 of coverage
,All of the following must be listed on Form MCS-90, except: - Answer The policy premium
amount
Which of the following is true regarding Personal Inland Marine Insurance? - Answer
Since moveable property is also known as floating property, the policies are sometimes
known as floater policies
The Commercial basic Cause of Loss Form DOES NOT cover which of the following
perils? - Answer Earth Movement
Which of the following is NOT an Optional Coverage under the Businessowners Policy? -
Answer Personal property of others that is in the insured's care, custody and control
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is
correct? - Answer Business auto coverage for a vehicle the insured rents is added to the
coverage
It is prohibited for an agent to include in the sum charged for a policy any fee,
compensation, or charge that is not specified in the policy. This is an unfair trade practice
referred to as: - Answer Nondisclosure of fees
Under the Nebraska's Workers' Compensation Plan, assignments may not exceed: -
Answer 5 years
Which of the following is not an additonal coverage under the BOP? - Answer Personal
effects
P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this
transaction, who is known as the principal? - Answer ABC Insurer
Section II (Liability) of the Garage Coverage Form covers which of the following? -
, Answer Property damage for which the insured is legally responsible
All of the following are additional coverages under the Building and Personal Property
Coverage Form, except: - Answer Peak season
Which of the following is true concerning monopolistic states regarding Workers'
Compensation insurance? - Answer In Monopolistic states, Workers' Compensation is
only available through a state fund
Which of the following would not be covered under a Valuable Papers and Records
Floater? - Answer Securities
The Nebraska Property and Liability Insurance Guaranty Association will cover claims
existing prior to the determination of insolvency and arising within _____ days after the
determination of insolvency. - Answer 30
Which of the following is true about Builders Risk Floater? - Answer Coverage can be
provided for farms
Which of the following is not a condition found in an insurance policy? - Answer
Insurance Agreement
Which statement regarding liability insurance coverage is incorrect? - Answer The per
occurrence limit is the maximum amount recoverable during the policy period
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? -
Answer A car used to carpool with colleagues
Which statement about property coverages provided by Homeowners policies is
incorrect? - Answer The HO-4 covers the dwelling against the Broad Form named perils
On the Personal Auto Policy, the Collision coverage provides payment for losses: -
100% Correct Solutions
An organization that writes liability insurance to cover the liability exposure for the
mining engineers that belong to its associations is: - Answer A Risk Retention Group
Which of the following parties may assign a standard property policy? - Answer The
insurer with prior written permission of the insurer
The Difference in Conditions Policy is a special form used to fill in gaps of a property
policy. Which of the following is true regarding this policy? - Answer It is generally
written on an open perils basis, excluding losses by perils that are covered under
standard property forms
Under Part A of a Personal Auto policy, which of the following losses would be covered?
- Answer Damage to a neighbor's parked car
Assumption of Risk - Answer Not an element of negligence
Which of the following coverages is not provided by the Personal Liability Supplement? -
Answer Medical payments to a regular resident of the dwelling who sustains an injury
Truckers Coverage Form - Answer Covers business exposures of motor carriers for hire
who transport the goods of others, rather than its own goods.
Under a Homeowners policy, how much coverage is provided for theft or unauthorized
use of a credit or debit card? - Answer 500
Valuation Clause - Answer A condition under a Building and Personal Property Coverage
Form that determines how losses will be paid?
Discovery Form - Answer A crime for that requires the use of a Retroactive Date
The Farm Liability Policy WOULD NOT cover? - Answer A neighbor who is accidentally
hurt on the insured's farm makes a claim for medical payments 4 years after suffering
injury
False Advertising - Answer It is an unfair trade practice to present any information that is
misleading about any insurer in the conduct of their insurance business.
The Personal Liability endorsement DOES NOT provide coverage for which of the
following? - Answer Injury caused to a regular resident of the dwelling.
The Additional Coverages part of a property insurance policy provides: - Answer
,Coverage automatically included in the policy to supplement the basic coverages in the
Insuring Agreement without an additional premium
Premises liability exposure - Answer Not a contingent liability exposure
Part D of the Personal Auto Policy provides which of the following coverages? - Answer
Coverage for Damage to Your Auto
Which statement about the Builders Risk form is NOT correct? - Answer Coverage is
always written on an open peril basis
Which of the following statements about a property policy is false? - Answer The purpose
of coinsurance is to have the insure retain part of the risk
A Broad Form Homeowners policy would NOT cover which of the following losses? -
Answer Water damage to personal property stored in the basement after a sump pump
overflows
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include:
- Answer A family member, occupying an insured auto struck by an uninsured vehicle
Combined single limits - Answer The policy liability limits that may be applied to either
bodily injury or property damage, in any combination
Which of the following is NOT one of the limits of liability provided by the CGL? - Answer
Bodily injury limit
A person operating a motor vehicle who is not able to provide current proof of financial
responsibility in the vehicle when requested by a Nebraska law enforcement officer is
allowed _____ days to prove that financial responsibility was in effect at the time of the
request. - Answer 10
Which coverage is NOT an Additional Coverage under the Businessowners Coverage
Form? - Answer Equipment breakdown
Section II of a Homeowners policy may cover which of the following incidents? - Answer
Bodily injury to a stranger, caused by an insured's activities while picnicking at a city
park
The insured is part of a homeowners association. After a property loss to the common
area owned by all of the association's members, the insured is assessed $1,500 for the
damages. The insured's Homeowners policy will provide: - Answer $1,000 of coverage
,All of the following must be listed on Form MCS-90, except: - Answer The policy premium
amount
Which of the following is true regarding Personal Inland Marine Insurance? - Answer
Since moveable property is also known as floating property, the policies are sometimes
known as floater policies
The Commercial basic Cause of Loss Form DOES NOT cover which of the following
perils? - Answer Earth Movement
Which of the following is NOT an Optional Coverage under the Businessowners Policy? -
Answer Personal property of others that is in the insured's care, custody and control
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is
correct? - Answer Business auto coverage for a vehicle the insured rents is added to the
coverage
It is prohibited for an agent to include in the sum charged for a policy any fee,
compensation, or charge that is not specified in the policy. This is an unfair trade practice
referred to as: - Answer Nondisclosure of fees
Under the Nebraska's Workers' Compensation Plan, assignments may not exceed: -
Answer 5 years
Which of the following is not an additonal coverage under the BOP? - Answer Personal
effects
P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this
transaction, who is known as the principal? - Answer ABC Insurer
Section II (Liability) of the Garage Coverage Form covers which of the following? -
, Answer Property damage for which the insured is legally responsible
All of the following are additional coverages under the Building and Personal Property
Coverage Form, except: - Answer Peak season
Which of the following is true concerning monopolistic states regarding Workers'
Compensation insurance? - Answer In Monopolistic states, Workers' Compensation is
only available through a state fund
Which of the following would not be covered under a Valuable Papers and Records
Floater? - Answer Securities
The Nebraska Property and Liability Insurance Guaranty Association will cover claims
existing prior to the determination of insolvency and arising within _____ days after the
determination of insolvency. - Answer 30
Which of the following is true about Builders Risk Floater? - Answer Coverage can be
provided for farms
Which of the following is not a condition found in an insurance policy? - Answer
Insurance Agreement
Which statement regarding liability insurance coverage is incorrect? - Answer The per
occurrence limit is the maximum amount recoverable during the policy period
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? -
Answer A car used to carpool with colleagues
Which statement about property coverages provided by Homeowners policies is
incorrect? - Answer The HO-4 covers the dwelling against the Broad Form named perils
On the Personal Auto Policy, the Collision coverage provides payment for losses: -
