PROPERTY AND CASUALTY EXAM QUESTIONS
AND ANSWERS 100% PASS
The one basic characteristic of any type of insurance is that the insured is returned to
the same status that existed prior to the loss, but without a chance for gain or profit -
✔✔ - true
Which of the following coverages does an open peril policy provide? - ✔✔ - perils other
than those specifically named as being excluded
Determine the actual cash value in the following situation: original price of office
equiptment when purchased 8 years ago- 9,000. Depreciated amount at time of fire-
5,000 current replacement cost 12,000 - ✔✔ - 7,000
Liquor liability - ✔✔ - need for a dram shot, liquor, or package store
Inherent vice or defect - ✔✔ - iron rusting, milk going sour, rubber breaking down are all
inherent vices
How is hitting an animal on the road covered? - ✔✔ - other than collision otc
Medicare supplement insurance - ✔✔ - aka medical gap insurance. Must include core
benefits
Ordinance or law - ✔✔ - an endorsement for building code upgrades
Loss sustained/discovery forms under crime coverage - ✔✔ - loss is for later than the
policy period. Discovery is for before the policy (loss is later, discovery before)
Designated brush fire or civil unrest areas - ✔✔ - qualifying areas under the fair plan
, Stop loss provision - ✔✔ - used in health insurance to limit the maximum amount of
money the insured would have to pay out of pocket on a health claim in any particular
claim
Shortages of inventory - ✔✔ - under crime insurance the employee dishonesty
endorsement never covers
Can the mortgagee still collect if the insured burns their house down - ✔✔ - yes, the
mortgage clause is a standard provision
Otc covers - ✔✔ - earthquake, flood, hail, theft, hitting an animal, gunshots (no collision
or upset)
Law of large numbers - ✔✔ - the greater the number of insured the more accurately the
prediction
Where does a driver have coverage? - ✔✔ - u.s. canada and us possessions eg puerto
rico, guam
What is excluded under commercial general liability? - ✔✔ - pollution-with the exception
of fuel spilled during normal operations. Pollution is normally covered under cpp or
builders risk
What is the midi-tail on claims made? - ✔✔ - provides 5 years coverage for something
reported during minitail
Speculative risk - ✔✔ - chance for loss or gain
Commercial package - ✔✔ - modular policy
AND ANSWERS 100% PASS
The one basic characteristic of any type of insurance is that the insured is returned to
the same status that existed prior to the loss, but without a chance for gain or profit -
✔✔ - true
Which of the following coverages does an open peril policy provide? - ✔✔ - perils other
than those specifically named as being excluded
Determine the actual cash value in the following situation: original price of office
equiptment when purchased 8 years ago- 9,000. Depreciated amount at time of fire-
5,000 current replacement cost 12,000 - ✔✔ - 7,000
Liquor liability - ✔✔ - need for a dram shot, liquor, or package store
Inherent vice or defect - ✔✔ - iron rusting, milk going sour, rubber breaking down are all
inherent vices
How is hitting an animal on the road covered? - ✔✔ - other than collision otc
Medicare supplement insurance - ✔✔ - aka medical gap insurance. Must include core
benefits
Ordinance or law - ✔✔ - an endorsement for building code upgrades
Loss sustained/discovery forms under crime coverage - ✔✔ - loss is for later than the
policy period. Discovery is for before the policy (loss is later, discovery before)
Designated brush fire or civil unrest areas - ✔✔ - qualifying areas under the fair plan
, Stop loss provision - ✔✔ - used in health insurance to limit the maximum amount of
money the insured would have to pay out of pocket on a health claim in any particular
claim
Shortages of inventory - ✔✔ - under crime insurance the employee dishonesty
endorsement never covers
Can the mortgagee still collect if the insured burns their house down - ✔✔ - yes, the
mortgage clause is a standard provision
Otc covers - ✔✔ - earthquake, flood, hail, theft, hitting an animal, gunshots (no collision
or upset)
Law of large numbers - ✔✔ - the greater the number of insured the more accurately the
prediction
Where does a driver have coverage? - ✔✔ - u.s. canada and us possessions eg puerto
rico, guam
What is excluded under commercial general liability? - ✔✔ - pollution-with the exception
of fuel spilled during normal operations. Pollution is normally covered under cpp or
builders risk
What is the midi-tail on claims made? - ✔✔ - provides 5 years coverage for something
reported during minitail
Speculative risk - ✔✔ - chance for loss or gain
Commercial package - ✔✔ - modular policy
