Property and Casualty Insurance Licensing Exam
Questions & Answers
To prevent recovery beyond the amount of the insured's actual loss, the policy will
contain:
- An Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects - B) upset of the vehicle
The maximum amount of payable for all losses resulting from one event is known
as the:
a) occurrence limit
b) aggregate limit - a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form - d) Basic form
The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000 - c) $500
The insured intentionally did not inform the insurer that the insured owned only
35% of the property. The insurer can void the policy for:
a) conditional coverage
, b) misrepresentation
c) error
d) concealment - d) concealment
Which of the following is NOT a defense against negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - c) presumption of negligence
The presumed authority necessary to carry out the producer's routine tasks is
known as:
a) expressed authority
b) implied authority - b) implied authority
Which of the following statements regarding the Towing and Labor endorsement is
false?
a) it will pay to the limit stated in the endorsement each time a covered vehicle is
disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - b) there is no coverage for roadside labor costs
A licensee may violate federal law and be subject to a fine and prison for doing
which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance regulator
c) fraudulently telling an insured a claim isn't covered on the policy
d) murdering an applicant - b) sending threatening letters to the state insurance
regulator
Which of the following is not an insured location for liability coverage under the
homeowners policy?
a) a restaurant party room the insured has rented for a business meeting
b) the insured's cemetery plot
Questions & Answers
To prevent recovery beyond the amount of the insured's actual loss, the policy will
contain:
- An Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects - B) upset of the vehicle
The maximum amount of payable for all losses resulting from one event is known
as the:
a) occurrence limit
b) aggregate limit - a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form - d) Basic form
The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000 - c) $500
The insured intentionally did not inform the insurer that the insured owned only
35% of the property. The insurer can void the policy for:
a) conditional coverage
, b) misrepresentation
c) error
d) concealment - d) concealment
Which of the following is NOT a defense against negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - c) presumption of negligence
The presumed authority necessary to carry out the producer's routine tasks is
known as:
a) expressed authority
b) implied authority - b) implied authority
Which of the following statements regarding the Towing and Labor endorsement is
false?
a) it will pay to the limit stated in the endorsement each time a covered vehicle is
disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - b) there is no coverage for roadside labor costs
A licensee may violate federal law and be subject to a fine and prison for doing
which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance regulator
c) fraudulently telling an insured a claim isn't covered on the policy
d) murdering an applicant - b) sending threatening letters to the state insurance
regulator
Which of the following is not an insured location for liability coverage under the
homeowners policy?
a) a restaurant party room the insured has rented for a business meeting
b) the insured's cemetery plot
