MO PROPERTY AND CASUALTY EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MO PROPERTY AND CASUALTY EXAMV QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? - Answers Liability coverage What are the two types of compensatory damages? - Answers Special and general Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? - Answers Additional coverage Which of the following policies will help an auto dealership cover most of its liability exposures? - Answers A garage liability coverage Under the commercial property coverage program, the basic causes of loss form insures against loss caused by... - Answers Sprinkler leakage The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what max time period? - Answers 1 year The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information... - Answers Within 45 days In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for - Answers Uninsured motorist coverage, bodily injury, and property damage A basic dwelling policy automatically provides coverage against fire, lightning, and - Answers Internal explosion Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? - Answers Special What term includes damage where the insured peril was the proximate cause of loss? - Answers Direct loss In liability insurance policies, supplementary payments are made - Answers In addition to the limit of liability According to businessowners policy Section I, which of the following is NOT a condition to be met for the terms of the policy to apply to mortgageholders? - Answers The mortgageholder must petition the state department of insurance for named status All of the following are supplemental payments found in liability policies EXCEPT - Answers Costs the insured incurred in hiring an attorney Which of the following would NOT qualify as a hired auto? - Answers An auto borrowed from an employee Coverage A - Bodily Injury and Property Damage in the CGL policy will cover - Answers Losses due to the insured's negligence Which method of loss valuation is contrary to the basic concept of indemnity? - Answers Replacement cost Which of the following is true regarding the fire department service charge under the builders risk form? - Answers It is an additional coverage What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy? - Answers 80% A building insured with commercial property insurance has been vacant 90 days. Which of the following is NOT true? - Answers Payment for unnamed perils is reduced by 25% A builder's risk form is most often written as which of the following? - Answers Completed value form A tornado that destroys property would be an example of which of the following? - Answers A peril Professional liability coverage protects the insured against legal liability resulting from - Answers Errors and omissions Replacement cost is defined as - Answers Full replacement of property at its current cost, new and without reduction for depreciation Duties of the insurer found in the property policy conditions include all of the following EXCEPT - Answers Notify the insured in the event of financial difficulty What type of compensatory damages will pay for pain and suffering and disfigurement? - Answers General Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim? - Answers Professional liability Which of the following is true of dwelling policy coverage? - Answers Exclusions apply to all three policy forms A company has a businessowners policy on a building with an estimated replacement cost of $300,000. The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be paid? - Answers The coinsurance formula would apply Which of the following types of valuation works best for property whose value does not fluctuate much? - Answers Agreed value Which of the following is NOT settled on an actual cash value basis while covered under the business property coverage form? - Answers Valuable papers and records The pro rata liability clause is designed to protect the principle of - Answers Indemnity All of the following are true statements regarding the supplementary payments of a CGL policy EXCEPT - Answers They pay defense costs even after the aggregate limit has been reached Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? - Answers The insured would be responsible for the amount required as underlying limits in the event of a claim.