OPINSTX-PC06 GENERAL LINES - PROPERTY AND CASUALTY
QUESTIONS AND ANSWERS
Which of the following is indicated on a
certificate of insurance?
A - Cost and amount of insurance
B - Types and cost of insurance
C - Amounts and types of insurance
D - Terms and conditions of insurance -ANSWER-Amounts and types of insurance
Which of the following provisions is usually
found in homeowners policies and provides a replacement cost settlement to policyholders
who carry adequate insurance?
A - Insurance to value
B - Coinsurance
C - Actual cash value
D - Pro rata -ANSWER-Insurance to value
,Under Coverage B - Other Structures, a homeowners policy provides coverage for other
structures on the residence premises. Which of the following statements is NOT true of this
coverage?
A - A detached garage may be covered if rented to others as a private garage.
B - Other structures may not be used to store business property of others, even though a
business is not conducted from the structure.
C - Any loss paid under Coverage B reduces the Coverage A limit of liability.
D - Other structures covered under Coverage B must be set apart from the dwelling by clear
space. -ANSWER-C - Any loss paid under Coverage B reduces the Coverage A limit of liability.
What is a sudden, unplanned and unexpected event, not under the control of the insured,
resulting in injury or damage that is neither expected nor intended called?
A - Burglary
B - Peril
C - Hazard
D - Accident -ANSWER-D - Accident
The commercial crime coverage that would cover losses resulting from the theft of money,
securities and other property by employees is
A - Inside the premises - theft of money and securities.
,B - Employee theft.
C - Funds transfer fraud.
D - Forgery or alteration. -ANSWER-B - Employee theft.
Which of the following will be covered by business owners property coverage form?
A - Aircraft and vehicles
B - Outdoor fences
C - Buildings and business personal property
D - Money and securities -ANSWER-C - Buildings and business personal property
If an insurance policy has the additional coverage provision, how does it affect the policy
premium?
A - Premium will be calculated on a pro rata basis based on the amount of additional
coverage.
B - There is no additional premium.
C - Premium will be recalculated when a specific loss covered by this provision occurs.
D - Additional premium will be assessed. -ANSWER-B - There is no additional premium.
, What term includes losses caused by continuous or repeated exposure to conditions
resulting in injury to persons or damage to property that is neither intended nor expected?
A - Accident
B - Incident
C - Additional Coverage
D - Occurrence -ANSWER-D - Occurrence
What kind of coverage does Form DP-3 provide?
A - Broad peril
B - Open peril
C - Basic peril
D - Named peril -ANSWER-B - Open peril
An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to
cover the property that is financed until it is sold. At closing time a month ago, she noticed
that 3 very expensive dresses had been stolen. However, she did not file a report to her
insurance company until recently. How much will her insurer pay for this loss?
A - 50% of the limit written
B - 90% of the limit written
QUESTIONS AND ANSWERS
Which of the following is indicated on a
certificate of insurance?
A - Cost and amount of insurance
B - Types and cost of insurance
C - Amounts and types of insurance
D - Terms and conditions of insurance -ANSWER-Amounts and types of insurance
Which of the following provisions is usually
found in homeowners policies and provides a replacement cost settlement to policyholders
who carry adequate insurance?
A - Insurance to value
B - Coinsurance
C - Actual cash value
D - Pro rata -ANSWER-Insurance to value
,Under Coverage B - Other Structures, a homeowners policy provides coverage for other
structures on the residence premises. Which of the following statements is NOT true of this
coverage?
A - A detached garage may be covered if rented to others as a private garage.
B - Other structures may not be used to store business property of others, even though a
business is not conducted from the structure.
C - Any loss paid under Coverage B reduces the Coverage A limit of liability.
D - Other structures covered under Coverage B must be set apart from the dwelling by clear
space. -ANSWER-C - Any loss paid under Coverage B reduces the Coverage A limit of liability.
What is a sudden, unplanned and unexpected event, not under the control of the insured,
resulting in injury or damage that is neither expected nor intended called?
A - Burglary
B - Peril
C - Hazard
D - Accident -ANSWER-D - Accident
The commercial crime coverage that would cover losses resulting from the theft of money,
securities and other property by employees is
A - Inside the premises - theft of money and securities.
,B - Employee theft.
C - Funds transfer fraud.
D - Forgery or alteration. -ANSWER-B - Employee theft.
Which of the following will be covered by business owners property coverage form?
A - Aircraft and vehicles
B - Outdoor fences
C - Buildings and business personal property
D - Money and securities -ANSWER-C - Buildings and business personal property
If an insurance policy has the additional coverage provision, how does it affect the policy
premium?
A - Premium will be calculated on a pro rata basis based on the amount of additional
coverage.
B - There is no additional premium.
C - Premium will be recalculated when a specific loss covered by this provision occurs.
D - Additional premium will be assessed. -ANSWER-B - There is no additional premium.
, What term includes losses caused by continuous or repeated exposure to conditions
resulting in injury to persons or damage to property that is neither intended nor expected?
A - Accident
B - Incident
C - Additional Coverage
D - Occurrence -ANSWER-D - Occurrence
What kind of coverage does Form DP-3 provide?
A - Broad peril
B - Open peril
C - Basic peril
D - Named peril -ANSWER-B - Open peril
An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to
cover the property that is financed until it is sold. At closing time a month ago, she noticed
that 3 very expensive dresses had been stolen. However, she did not file a report to her
insurance company until recently. How much will her insurer pay for this loss?
A - 50% of the limit written
B - 90% of the limit written
