Louisiana State insurance Final Revised Exam 2026

Insurance Insurance Louisiana State insurance Final Revised Exam 2026 Misrepresenting pertinent policy provisions relating to coverage after a loss - Correct Answer-is an unfair claims settlement practice In general practice, which one of the following is true of the powers of the commissioner of insurance with respect to access the producer's business records - Correct Answer records must be produced upon request of the commissioner Under commercial inland marine, transportation coverage does not include goods shipped by - Correct Answer-sea Strict liability is best defined as - Correct Answer-liability without regard to fault The purpose of regulation of insurance advertising is to do all of the following except - Correct Answer-prevent unfair competition among insurers Each licensed insurance company must do all of the following except - Correct Answer allow a periodic examination by the commissioner of insurance What is the purpose of louisina worker's compensation corporation - Correct Answer-to reduce premium rates for good workers compensation risk Under the standard fire policy, the insurer may indemnify the insured in all of the following ways except - Correct Answer-pay the original cost of the property All of the following are unfair trade practices except - Correct Answer-refusing to insure Sometimes when there is ambiguous wording in an insurance contact, they rely on what doctrine to determine what cover applies - Correct Answer-doctrine of good faith The owners and contractors' protective liability policy provides the insured with liability protection if a situation arises. What is the contractor liable for negligence of? - Correct Answer-a subcontractor Which of the following benefits are not paid under the workers compensation law - Correct Answer-pain and suffering Insurance Insurance Which of the following is not covered under supplementary payments coverage of the liability section of the person auto policy - Correct Answer-appeal bonds An example of an unfair pracice is - Correct Answer-giving anything of value other than as specified in the contract Which of the following is covered under the builder's risk coverage - Correct Answer-a contractor's tools A liability policy has a per person lmit of 25k, a per accident limit of 50k for bodiiy damage and another limit - Correct Answer-an aggregate Before receiving an insurance license an applicant must - Correct Answer-pay a license application fee to the la dept of insurance A purpose of underwriting is to protect the insured against - Correct Answer-direct loss Coverage d of the farm property form provides additional coverage for which of the following - Correct Answer-living expenses for the loss of us of living quarters in residence premises The federal law that requires insurance companies to explain their information sharing process to their customers is - Correct Answer-Gramm leach Biley act In a commercial gl policy, what is the term for the max amount an insurer will pay for all claims regarding a single accident - Correct Answer-aggregate limit All of the following loses are genera exclusion under a dwelling policy except - Correct Answer-nuclear hazard Something that increases the probability of loss - Correct Answer-is a peril What damages are designed to restore the claimant to pre-injury status - Correct Answer-compensatory damages The type of construction that uses materials that can withstand fire for at least 2 hours is - Correct Answer-masonry A type of commercial property that provides two or more property and liability insurance coverage is called - Correct Answer-package policy All of the following are unfair insurance trade practices except - Correct Answer receiving a commission as a licensed producer Insurance Insurance The uniform business entity application was created for resident and nonresident business entities by the - Correct Answer-national association of insurance commissioners A producer's license may be suspended - Correct Answer-automatically for any alleged misrepresentation Which of the following statement applies to mortgagee listed on a property policy - Correct Answer-the mortgagee may file a proof of loss of the insured fails to do so No existing insurance lines will be revoked until - Correct Answer-a licensee has properly notified of the departments intent What law do all insurers and heir producer's need to comply with in regard to information being optioned - Correct Answer-fair credit reporting act Which of the following exposures would be necessary to purchase a garage coverage form - Correct Answer-franchise auto dealer In section 2 of a homeowner's policy which of the following is an exclusion - Correct Answer-injuries to others that occurred on the insured's property The Louisiana insurance doe prohibits all of the following practices except - Correct Answer-binding coverages According to the "other insurance condition" of the dwelling policy, if a loss is also covered by other insurance the dwelling policy will - Correct Answer-cover the loss on a primary basis and the other insurance will be excess What is an accurate description of burglary - Correct Answer-taking property from inside the premises by a person who commits forcible entry into the property All of the following are considered covered vehicles under a personal auto policy excpet - Correct Answer-motorcycle Before a resident insurance producer licensee may be issued a applicant must - Correct Answer-obtain a passing score on the Louisiana insurance examination An insurance contract consists of all of the following except - Correct Answer-a certificate of authority Insurance Insurance If the commissioner of insurance finds that a producer has been engaging in unfair practices defined in the Louisiana code - Correct Answer-commissioner can suspend the producer's license While driving a company car that is covered by a commercial auto policy, an individual had a Collison with a deer that shattered the windshield. How would this loss be covered? - Correct Answer-the loss would be covered by the policies comprehensive coverage subject to any deductible Upon revocation of a producer's license who is responsible for notifying the insurers represented by the producers - Correct Answer-the licensee An insurer that is owned by its policyholders and can pay annual dividend to hem is considered a - Correct Answer-a mutual company Which of the following illustrates the concept of negligence - Correct Answer-a driver carelessly damages another car An employee using his/her own vehicles for pizza delivery is involved in an accident. Which coverage would the employer need for this to be covered - Correct Answer-non owned automobile Supplemental coverage to a homeowner's policy is listed articles is reffered to as - Correct Answer-a scheduled personal property endorsement Which would normally occur when an injured employee who is receiving workers compensation benefits refuses vocational rehabilitation - Correct Answer-the employer would have no further obligation to that employee Under an equipment breakdown coverage form a breakdown would include - Correct Answer-explosion of pressure vessel Which type of penalty does an insured suffer if they do not carry sufficient property insurance to meet the policy requirements - Correct Answer-coinsurance What information must be included in the statement accompanying an insurance claim payment made by the insurer - Correct Answer-a list of all claimants involved in Claims settlement practices of insurer's are regulated by - Correct Answer-the national association of insurance commisoners Insurance Insurance Which of the following is an example of a consequential loss - Correct Answer-a manufacturing plan is unable to operate because of its suppliers lost its production part in a fire A deliberate lie by an insured to the insurer to obtain a lower premium is an example of - Correct Answer-fraud What must occur before a producer can receive commissions under an appointment with an additional insurer - Correct Answer-the appointment must be recorded by the commissioner of insurance A contractor insured under a CGL policy completes the building and turns the key over to the owner. The building then starts leaking and causing damage to the inventory. This is an example of what type of liability exposure? - Correct Answer-completed operations liability Which is an accurate statement regarding GCL conditions - Correct Answer-coverage may be written only on a primary basis The definition of business under a homeowners policy includes which of the following - Correct Answer-a trade, profession, or occupation engaged in a full-time or part-time or occasional basis Under the personal injury and advertising injury coverage of the cgl policy which of the following conditions would be covered? - Correct Answer-the business sign falls on a customer A producer may be guilty of misrepresentation if the producer - Correct Answer-failed to disclose exclusions of the policy A homeowner's policy covers which of the following issues - Correct Answer-damage by flood According to the law of the agency, which of the following is considered the principal - Correct Answer-the insurer In order to be classified as an act of terrorism under the terrorism risk insurance act of 2012 the act must - Correct Answer-produce and casualty insurance losses in any amount In a speech to a local producers association, a producer incorrectly state that xyz insurabce copany is in financial difficulty. The producer may be guilty of - Correct Answer-defamation Insurance Insurance The standard fire policy may restrict or suspend coverage when any of the following occur - Correct Answer-hazards within the insureds control increase On a commercial package policy which of the following is not included on a common policy declarations app - Correct Answer-schedule of vehicles For personal automobile insurance in Louisiana the require minimum limit for bodily injury or death to any one person or any one accident - Correct Answer-15,000 A property policy may become void for any of the following actions on the part of the insured except - Correct Answer-unintentional increase in fire hazard The "your" duties if injury occurs" section of the workers compensation policy dies not require the insured to - Correct Answer-report injury to the state Which of the following would be a specific duty of the insuere in a liabiity policy - Correct Answer-providing legal defense What is the purpose of difference in conditions insurance on a commercial policy - Correct Answer-provides broad coverage to fill gaps The purpose of regulation of insurance advertising is to do all of the following except - Correct Answer-prevent unfair competition among insures An insure may take into account whether the applicant is male or female when determining - Correct Answer-rates A commerical general liability policy coverage for all of the following except - Correct Answer-injuries to employees A producer accepts premium payment on a lapsed policy. Which type of authority is described by the insured - Correct Answer-apparent A violation of us code 1033, crimes by, or affecting persons engaged in the business of insurance when - Correct Answer-director of the national insurance crime bureau The transfer of duties and rights of an insurance policy from one policyowner to another is called - Correct Answer-assignment The insured chose not to purchase physical damage coverage on a snowmobile. Which method of handling risk is this - Correct Answer-avoidance Insurance Insurance All of the following would be covered under coverage a of a dwelling policy except for - Correct Answer-building materials at the described locationbeing used to replace the dwelling's kitchen flooring A type of property that would be insured by the dwelling policy under coverage c - personal property is a - Correct Answer-watch belonging to the guest An example of a blanket insurance policy is - Correct Answer-single policy limit that covers multiple properties in different locations The period of restoration is a typical business income coverage form ends when the - Correct Answer-repairs have been completed with reasonable speed Which is an accurate statement regarding earthquake endorsements attached to a homeowners policy - Correct Answer-a deductible is included based on a percentage of coverage Through an individual's producer contract does not specially address his practice of providing client with insurance - Correct Answer-implied Where can a company that does business in a monopolistic state go to purchase workers comp coverage - Correct Answer-insurance can only be purchased through the state government Which of the following is incorrect about workers compensation insurance - Correct Answer-it includes coverage for occupational diseases Under the standard fire policy when a loss settlement is made under an appraisal agreement, how are expenses of the appraiser umpire applied - Correct Answer-the insurer and the insured each pay their own appraisers and share the expense of the umpire Damage cause by more than one peril at the same time is - Correct Answer-a concurrent causation A rate is defined as the - Correct Answer-factor used in the premium determination Continuing education requirements for insurance licensing must be met - Correct Answer-every 2 years A general liability policy covers bodily injury as a result of - Correct Answer-an injury on the premisses Insurance Insurance Which of the following terms describes the fact that both parties of a contract may not receive the same - Correct Answer-aleatory The liability section of the homeowner's policy provides additional coverage for claim expenses reimbursing the insured for all of the following except - Correct Answer-lost earnings A policyowner received a legal notice of cancellation on a $500,000 homeowner's policy. The insurer failed to notify the mortgagee which has a $200,000 loan on the property. After a $350,000 property loss how much would the mortgagee be paid - Correct Answer-$200,000 The type of insurer that is unincorporated solely for the benefit of its members and not for a profit is a - Correct Answer-fraternal benefit society Which one of the following is not one of the four coverage parts that compose section 1 of the homeowner's policy - Correct Answer-theft For personal automobile insurance in Louisiana, the required minimum limit for bodily injury or death to two or more people in any one accident - Correct Answer-$30,000 The commissioner of insurance may suspend any insurance producer's license for all of the following reasons except - Correct Answer-soliciting insurance in adjoining states All of the following are true concerning Louisiana license residency requirements except - Correct Answer-the license may be maintained when the licensee ceases to be a resident of Louisiana False advertising regarding insurance policies would be found in all of the following except: - Correct Answer-past dividends paid on a policy being exaggerated What information must each licensee report within 30 days to the commissioner of insurance - Correct Answer-address change When comparing a dp-2 form to an dp-3 the dp-3 provides the insured with - Correct Answer-open peril coverage A cgl occurrence form covers claims that only - Correct Answer-occur within the policy period Dwelling and homeowner's policies both exclude coverage for - Correct Answer-flood Insurance Insurance An important difference between surety bonds and insurance policies is that - Correct Answer-insurance involves only two parties while bonds include three parties A homeowner's debris removal clause covers - Correct Answer-trees that damage a covered building from a covered peril When someone purchases insurance as a result of threats made by the producer there has been a practice of - Correct Answer-unfair trade practices law Which part of the garage overage form provides liability coverage for automobiles in the care, custody, and control of the insured - Correct Answer-garage keepers coverage One of a set of three valuable collectible plates is destroyed in a covered loss. How is this claim settled under the terms of the pair and set clause on a dwelling policy - Correct Answer-the difference between the actual cash value of the property before and after the loss What is the purpose of the businessowner policy - Correct Answer-to allow usured to provide coverage for their small business Which of the following is not covered by personal automobile liability policy - Correct Answer-a 350cc motercyle In Louisiana the personal automobile insurance the required min liability limits are 15/30/25 - Correct Answer-15/30/25 Underinsured motorist coverage only applies when the - Correct Answer-driver of the vehicle that caused the accident as insufficient liability limits that are lower than the other insured's Undera a mobile home policy, coeverage e- personal liability apples to which of the fowlling situations - Correct Answer-defense costs if a lawsuit is filed against you In Louisiana under the sfp proof of loss must be sent to the company within - Correct Answer-30 days after the loss What clause states that the insurer will pay only its share of a loss that is also covered by another similar policy - Correct Answer-other insurance An dp-4 can be issued to which of the following - Correct Answer-a nonowner tenant of an apartment Insurance Insurance The coverage that continues beyond the expiration of a liability policy when a claim made baes is - Correct Answer-extended reporting period When section of an insurance policy clarifies the meanings of certain terms used in the policy - Correct Answer-definitions Defamation includes all of the following conduct by a producer except - Correct Answer participating in unfair discrimination The location where coverage under a policy applies is referred to as the policy - Correct Answer-territory Which of the following would provide the essential elements necessary to establish a valid insurance contract between two parties - Correct Answer-offer, acceptance, competent parties, and consideration An insurance policy written with an agreed value differs from a policy written on a replacement cost basis by the - Correct Answer-original purchase price A drug store has discovered their prescription drug records are missing and must be reconstructed. The buisnessowners policy coverage form would cover the cost - Correct Answer-of valuable papers and records coverge form A contract will be deemed invalid if - Correct Answer-one party was not competent Under a personal automobile policy part a - liability coverage covers damages for which of the following - Correct Answer-damages for liability or property to the owner insured of the vehicle as a result of a covered accident Who is responsible for reporting the producer's change of address to the commissioner of the department of insurance - Correct Answer-the producer A deer jumped onto the road and was struck by an insured vehicle causing damage to it. Under which coverage of the personal auto policy is the damage to the vehicle covered - Correct Answer-other-than-collision When a producer misstates a lower personal auto policy premium, and the coverage is bound - Correct Answer-the insured may cancel the policy and receive a pro rata refund Hte broad theft coverage endorsement on a dwelling policy includes coverage for all of the following except - Correct Answer-personal injury Insurance Insurance Which is not an exclusion from a commercial automobile insurance policy - Correct Answer-operating a covered vehicle a speed deemed reckless by authorities A type of insurance that protects an individual who fails to meet the standard of skill and care generally accepted for her occupation is - Correct Answer-professional liability insurance Which of the following endorsements ensure that your content are not valued on an actual cash value basis - Correct Answer-personal property replacement cost A producer's lcnes eto sell insurance may be revoked for all of the following reaonsn except - Correct Answer-declaring personal bankruptcy Which of the following would be covered under the uninsured motorist's section of a personal automobile policy - Correct Answer-a hit and run driver strike an insured's vehicle injuring a passenger in the vehicle Which of het following watercraft could the unsure purchase and be assured it is automatically covered for liability under their homeowner's policy - Correct Answer-an outboard boat with a 15-horsepower engine Forced entry was used to break into the c.j. Engineering company and a company file cabinet was removed by thieves under the commercial crime coverage former, what type of loss occurred - Correct Answer-burglary A disease resulting from causes unique to the trade in which the employee is exposed to is a definition of - Correct Answer-occupational disease A business that transports its own cargo and also transports cargo for hire would be referred to as a - Correct Answer-motor carrier All of the following are functions of the department of insurance except - Correct Answer-maintain records of individual policies of insurance issued What is not covered in the farm liability coverage form - Correct Answer-injury to employees A producer who attempts to intimidate a prospective inured is guilty of - Correct Answer coercion