PROPERTY AND CASUALTY
EXAM LOUISIANA EXAM
QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE .
,1.Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the event of a loss, the insured
must notify ✔✔ correct answer Any of the insurers providing coverage.
2. The policy conditions define ✔✔ correct answer How parties to the contract must act following a loss.
3.
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts
which require all of the following elements EXCEPT ✔✔ correct answer Conditions.
4.The value placed on property insured under a fire insurance policy is used to determine the policy's ✔✔
correct answer Premium.
5. Shipbuilders and repairers are covered by the ✔✔ correct answer U.S. Longshore and Harbor Workers Compensation Act.
6. Which of the following terms refers to a person's ability to do some work or the need to do alternative work? ✔✔
correct answer Temporary partial disability
7. Insurer examinations must occur no less frequently than every ✔✔ correct answer 5 years.
8.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of premium, how
much prior notice must the insurer give to the first named insured? ✔✔ correct answer 10 days
9.The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium
building associations to cover the entire building under one policy. Which of the following statements about
RCBAP is true? ✔✔ correct answer It does not protect the individual owner from loss to personal property owned exclusively by the unit owner.
10. What is surplus lines insurance? ✔✔ correct answer Insurance placed with an unauthorized insurer
11. How long is a waiting period upon purchase of flood coverage through NFIP? ✔✔ correct answer 30 days
12. Funding for the operation and administration of the Louisiana Insurance Guaranty Association comes from ✔
✔ correct answer Annual assessments paid by member insurers.
13. Uninsured Motorist property damage coverage is subject to a deductible of ✔✔ correct answer $250.
14.Rates that are established based on the similarities of the risk with other risks are known as ✔✔ correct answer
Manual rates.
15. The personal injury liability endorsement to an HO policy applies to all the following EXCEPT ✔✔ correct answer A
third party breaks a leg when the insured knocks him down.
, 16.The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rates is known as ✔✔ correct answer Underwriting.
17. Terrorism Risk Insurance Program Reauthorization Act of 2015 has extend- ed the TRIA to the year ✔✔
correct answer 2020
18. According to the Fair Credit Reporting Act, all of the following would be considered negative information about
a consumer EXCEPT ✔✔ correct answer Disputes regarding consumer report information
19. Replacement cost coverage is provided in both the broad and special form dwelling policies when ✔✔ correct
answer At least 80% of the replacement cost
20.The business income coverage form covers consequential loss of business income that occurs when a business
must suspend operations because of a direct loss. Which of the following terms best describes the nature of this
type of coverage? ✔✔ correct answer Time element
21. Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability
which the insured has agreed to assume under a written contractual agreement? ✔✔ correct answer Contractural liability
policy
22. Which commercial crime form would provide coverage for a loss that did not necessarily happen during the
policy period but was revealed during the policy period? ✔✔ correct answer Discovery form
23. Under the Fair Credit Reporting Act, if the consumer challenges the accu- racy of the information contained in
his or her report, the reporting agency must ✔✔ correct answer Respond to the consumer's complaint.
24. Workers compensation benefits are provided for an employee injury or death that arises out of the course of
normal employment in all of the fol- lowing situations EXCEPT ✔✔ correct answer On his evening stroll, an employee of an advertising
company is injured while watching a competitor's billboard sign being removed from an advertising site.
25.An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay
$10,000 for a covered loss. What characteristic of an insurance contract does this describe? ✔✔ correct answer
Aleatory
26. An uninsured motor vehicle includes all of the following EXCEPT ✔✔ correct answer The vehicle has no liability bond or
insurance in force.
EXAM LOUISIANA EXAM
QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE .
,1.Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the event of a loss, the insured
must notify ✔✔ correct answer Any of the insurers providing coverage.
2. The policy conditions define ✔✔ correct answer How parties to the contract must act following a loss.
3.
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts
which require all of the following elements EXCEPT ✔✔ correct answer Conditions.
4.The value placed on property insured under a fire insurance policy is used to determine the policy's ✔✔
correct answer Premium.
5. Shipbuilders and repairers are covered by the ✔✔ correct answer U.S. Longshore and Harbor Workers Compensation Act.
6. Which of the following terms refers to a person's ability to do some work or the need to do alternative work? ✔✔
correct answer Temporary partial disability
7. Insurer examinations must occur no less frequently than every ✔✔ correct answer 5 years.
8.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of premium, how
much prior notice must the insurer give to the first named insured? ✔✔ correct answer 10 days
9.The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium
building associations to cover the entire building under one policy. Which of the following statements about
RCBAP is true? ✔✔ correct answer It does not protect the individual owner from loss to personal property owned exclusively by the unit owner.
10. What is surplus lines insurance? ✔✔ correct answer Insurance placed with an unauthorized insurer
11. How long is a waiting period upon purchase of flood coverage through NFIP? ✔✔ correct answer 30 days
12. Funding for the operation and administration of the Louisiana Insurance Guaranty Association comes from ✔
✔ correct answer Annual assessments paid by member insurers.
13. Uninsured Motorist property damage coverage is subject to a deductible of ✔✔ correct answer $250.
14.Rates that are established based on the similarities of the risk with other risks are known as ✔✔ correct answer
Manual rates.
15. The personal injury liability endorsement to an HO policy applies to all the following EXCEPT ✔✔ correct answer A
third party breaks a leg when the insured knocks him down.
, 16.The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rates is known as ✔✔ correct answer Underwriting.
17. Terrorism Risk Insurance Program Reauthorization Act of 2015 has extend- ed the TRIA to the year ✔✔
correct answer 2020
18. According to the Fair Credit Reporting Act, all of the following would be considered negative information about
a consumer EXCEPT ✔✔ correct answer Disputes regarding consumer report information
19. Replacement cost coverage is provided in both the broad and special form dwelling policies when ✔✔ correct
answer At least 80% of the replacement cost
20.The business income coverage form covers consequential loss of business income that occurs when a business
must suspend operations because of a direct loss. Which of the following terms best describes the nature of this
type of coverage? ✔✔ correct answer Time element
21. Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability
which the insured has agreed to assume under a written contractual agreement? ✔✔ correct answer Contractural liability
policy
22. Which commercial crime form would provide coverage for a loss that did not necessarily happen during the
policy period but was revealed during the policy period? ✔✔ correct answer Discovery form
23. Under the Fair Credit Reporting Act, if the consumer challenges the accu- racy of the information contained in
his or her report, the reporting agency must ✔✔ correct answer Respond to the consumer's complaint.
24. Workers compensation benefits are provided for an employee injury or death that arises out of the course of
normal employment in all of the fol- lowing situations EXCEPT ✔✔ correct answer On his evening stroll, an employee of an advertising
company is injured while watching a competitor's billboard sign being removed from an advertising site.
25.An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay
$10,000 for a covered loss. What characteristic of an insurance contract does this describe? ✔✔ correct answer
Aleatory
26. An uninsured motor vehicle includes all of the following EXCEPT ✔✔ correct answer The vehicle has no liability bond or
insurance in force.
