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Pearson VUE: Property Insurance,
Study questions insurance, Casualty FL.
Exam Questions And Answers
Which of the following are true about the theft inside the premises insuring
agreement?
A) It covers loss to safes on the premises
B) It covers money and securities outside the premises. When in the custody of a
messenger.
C) It does not cover damage to the exterior of the premises.
D) It covers money and securities outside the premises, while in the custody of an
armored vehicle company.
Answer: correct answer is a.
Theft inside the premises covers money and securities only inside the premises,
and it does cover damages to the exterior of the premises. The only correct answer
is that it covers loss to safes on the premises.
Who enforces the regulations found in the ccr?
A) The naic
B the california legislator
C. The public via a referendum
D. The insurance commissioner
Answer: d
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The commissioner enforces the code by writing and adopting regulations that
specify the manner of enforcement of provide details that are not explicitly cited in
the code.
All of the following are true of a fair plan, except:
A) The fair plan is a joint reinsurance association
B) Every insurer in the state must participate in the program
C) Agents do not have binding authority
D) Coverage is available for farm, but not for auto risks
Answer: d
Neither farm nor auto risks are covered by the fair plan.
An individual who uses a truck type vehicle to carry his own cargo would
receive auto coverage under which of the following coverage forms:
A) Business auto coverage form
B) Garage coverage form
C) Owners coverage form
D) Truckers coverage form
Answer: a
This would be a private carrier and the business auto coverage form would apply.
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Under the building and personal property coverage form, which of the
following is true regarding property off premises?
A) It is offered as an additional coverage
B) There is a coverage limit of $5,000 on property off premises
C) Property in a motor vehicle or in the care, custody, and control of a salesperson
is not covered
D) Property off premises is covered only for 30 days after its removal from the
premises
Answer: c
$10,000 coverage is available for property that is away from the premises if it is
temporarily at a location the insured does not own, lease or operate. It is a coverage
extension, not an additional coverage.
Under the workers' compensation policy, all of the following are true, except:
A) An accident occurring after the policy period expiration date would be covered
B) Coverage applies to bodily injury due to disease, as well as to injury due to
accident
C) The bodily injury must be caused by the conditions of employment
D) The policy covers litigation costs taxed against the insured
Answer: a
The accident causing the bodily injury must occur during the policy period.
Generally, a licensed person who maintains claims files as required by law
must do all of the following, except:
A) Make required files available for inspection by the commissioner at all times
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B) Discard by cross-cut shredding or incineration all claim files which are more
than 3 years old
C) Document the date a claim was received, and the date a claim was paid, denied,
or closed without payment.
D) keep copies of all documents, notes and work papers, and correspondence
reasonably relevant to the claim
answer: b
Claims files must be available for the current year and, at a minimum, the 4
preceding full years.
The provision that establishes the method by which coverage will be applied if
other insurance applies to the loss, is sometimes called:
A) The claim settlement provision
B) The other insurance provision
C) The subrogation provision
D) The limit of liability provision
answer: b
The other insurance provision is sometimes known as the pro rata liability
provision because it provides for claim settlement to be proportioned to the amount
of other insurance.
An insurer authorized to transact insurance in a particular state by that
state's insurance department is known as:
A) An admitted insurer
B) A nonadmitted insurer
Pearson VUE: Property Insurance,
Study questions insurance, Casualty FL.
Exam Questions And Answers
Which of the following are true about the theft inside the premises insuring
agreement?
A) It covers loss to safes on the premises
B) It covers money and securities outside the premises. When in the custody of a
messenger.
C) It does not cover damage to the exterior of the premises.
D) It covers money and securities outside the premises, while in the custody of an
armored vehicle company.
Answer: correct answer is a.
Theft inside the premises covers money and securities only inside the premises,
and it does cover damages to the exterior of the premises. The only correct answer
is that it covers loss to safes on the premises.
Who enforces the regulations found in the ccr?
A) The naic
B the california legislator
C. The public via a referendum
D. The insurance commissioner
Answer: d
,2|Page
The commissioner enforces the code by writing and adopting regulations that
specify the manner of enforcement of provide details that are not explicitly cited in
the code.
All of the following are true of a fair plan, except:
A) The fair plan is a joint reinsurance association
B) Every insurer in the state must participate in the program
C) Agents do not have binding authority
D) Coverage is available for farm, but not for auto risks
Answer: d
Neither farm nor auto risks are covered by the fair plan.
An individual who uses a truck type vehicle to carry his own cargo would
receive auto coverage under which of the following coverage forms:
A) Business auto coverage form
B) Garage coverage form
C) Owners coverage form
D) Truckers coverage form
Answer: a
This would be a private carrier and the business auto coverage form would apply.
,3|Page
Under the building and personal property coverage form, which of the
following is true regarding property off premises?
A) It is offered as an additional coverage
B) There is a coverage limit of $5,000 on property off premises
C) Property in a motor vehicle or in the care, custody, and control of a salesperson
is not covered
D) Property off premises is covered only for 30 days after its removal from the
premises
Answer: c
$10,000 coverage is available for property that is away from the premises if it is
temporarily at a location the insured does not own, lease or operate. It is a coverage
extension, not an additional coverage.
Under the workers' compensation policy, all of the following are true, except:
A) An accident occurring after the policy period expiration date would be covered
B) Coverage applies to bodily injury due to disease, as well as to injury due to
accident
C) The bodily injury must be caused by the conditions of employment
D) The policy covers litigation costs taxed against the insured
Answer: a
The accident causing the bodily injury must occur during the policy period.
Generally, a licensed person who maintains claims files as required by law
must do all of the following, except:
A) Make required files available for inspection by the commissioner at all times
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B) Discard by cross-cut shredding or incineration all claim files which are more
than 3 years old
C) Document the date a claim was received, and the date a claim was paid, denied,
or closed without payment.
D) keep copies of all documents, notes and work papers, and correspondence
reasonably relevant to the claim
answer: b
Claims files must be available for the current year and, at a minimum, the 4
preceding full years.
The provision that establishes the method by which coverage will be applied if
other insurance applies to the loss, is sometimes called:
A) The claim settlement provision
B) The other insurance provision
C) The subrogation provision
D) The limit of liability provision
answer: b
The other insurance provision is sometimes known as the pro rata liability
provision because it provides for claim settlement to be proportioned to the amount
of other insurance.
An insurer authorized to transact insurance in a particular state by that
state's insurance department is known as:
A) An admitted insurer
B) A nonadmitted insurer
