Policy School Practice Questions and Answers 2023 with
complete solution
Which of the following sections of a policy limits coverage?
A. Insuring Agreement
B. Exclusions
C. Definitions
D. Conditions
B
In a state where minimum auto bodily injury liability limits are 20/40, S is driving with
limits of 20/40. S is responsible for an accident with T in which T suffers bodily injury in
the amount of $120,000. T has non-stacked Underinsured Motorists limits of 100/300.
How much will T's policy pay toward T's injuries?
A. $20,000
B. $80,000
C. $100,000
D. $120,000
A
In the event of a loss under a Personal Auto Policy, an insured is required to submit to
the insurance company all of the following information EXCEPT:
A. Notice of Loss
B. Get an appraisal of damages
C. Proof of Loss
D. List of witnesses
B
a store, all of the following situations would be considered theft EXCEPT:
A. Shortage of Inventory
B. Shoplifting
C. Robbery
D. Embezzlement
A
W, an electrician, caused damage to the main wiring of a shopping center while working
on another building. As a result, the shopping center was forced to close early for the
day. The loss resulting from this damage would be considered which of the following
types under W's Commercial General Liability policy?
A. Completed Operations
B. Premises Liability
C. Operations
D. Employee Liability
C
,The Fair Credit Reporting Act requires the:
A. Insurance company to inform the applicant a credit report may be obtained
B. Insurance company to run a DMV check
C. Insurance company to run a credit report
D. Insured to list all assets
A
In insurance, which of the following terms refers to continuous or repeated exposure to
conditions that may result in bodily injury or damage neither expected nor inteded?
A. A hazard
B. A peril
C. A risk
D. An occurrence
D
Products Liability coverage would insure damages that arise from which of the following
situations?
A. A bicycle rider is injured when a wheel malfunctions
B. An employer fired an employee
C. A customer fell on a wet floor
D. An employee dropped a TV he was working on
A
If an insured intentionally conceals a material fact about an auto to be covered by a
policy, coverage may be:
A. Unaffected
B. Voided
C. Premium increased
D. Cancelled at renewal
B
In a Commercial General Liability policy, medical payment expenses MUST be:
A. Incurred within 3 years
B. Reported within 3 years
C. Reported within one year
D. Incurred immediately
C
The attempt to restore an insured to the insured's previous financial condition before the
loss occurred is BEST described as:
A. Gain
B. Repayment
C. Rebating
D. Indemnification
D
, The Arbitration clause in a Personal Auto policy would be used in which of the following
circumstances?
A. The insured and the insurance company cannot reach an agreement regarding the
settlement of a claim
B. The insurer pays the insured for a loss caused by someone else
C. The insured and the insurance company cannot reach an agreement on a UN/UIM
claim
D. Allows the insured to abandon salvage
A
Which of the following individuals is a named insured under a Personal Auto policy?
A. Anyone driving the insured vehicle
B. A person who is listed in the Declarations section
C. Your child under the legal driving age
D. The mechanic working on your car
B
In an application for marine insurance, a yacht owner states that the yacht will only be
sailed on inland waters. If the insured subsequently sails the yacht on the seas,
coverage may be denied because the insured has breached:
A. A misrepresentation
B. A warranty
C. A promise
D. A representation
B
Under a Fidelity Bond, which of the following individuals is considered the obligee?
A. An employee
B. A visitor to the property
C. An employer
D. A secretary
C
An insurable binder is best described as:
A. Temporary short-term evidence of coverage
B. Evidence of coverage as long as you own the property
C. Evidence of coverage for 1 week
D. Evidence of coverage until you cancel
A
An insured may cancel a Personal Auto Policy by taking which of the following actions?
A. Give written notice to the insurer
B. Calling the insurer
C. Selling the auto
D. Buying a new auto
complete solution
Which of the following sections of a policy limits coverage?
A. Insuring Agreement
B. Exclusions
C. Definitions
D. Conditions
B
In a state where minimum auto bodily injury liability limits are 20/40, S is driving with
limits of 20/40. S is responsible for an accident with T in which T suffers bodily injury in
the amount of $120,000. T has non-stacked Underinsured Motorists limits of 100/300.
How much will T's policy pay toward T's injuries?
A. $20,000
B. $80,000
C. $100,000
D. $120,000
A
In the event of a loss under a Personal Auto Policy, an insured is required to submit to
the insurance company all of the following information EXCEPT:
A. Notice of Loss
B. Get an appraisal of damages
C. Proof of Loss
D. List of witnesses
B
a store, all of the following situations would be considered theft EXCEPT:
A. Shortage of Inventory
B. Shoplifting
C. Robbery
D. Embezzlement
A
W, an electrician, caused damage to the main wiring of a shopping center while working
on another building. As a result, the shopping center was forced to close early for the
day. The loss resulting from this damage would be considered which of the following
types under W's Commercial General Liability policy?
A. Completed Operations
B. Premises Liability
C. Operations
D. Employee Liability
C
,The Fair Credit Reporting Act requires the:
A. Insurance company to inform the applicant a credit report may be obtained
B. Insurance company to run a DMV check
C. Insurance company to run a credit report
D. Insured to list all assets
A
In insurance, which of the following terms refers to continuous or repeated exposure to
conditions that may result in bodily injury or damage neither expected nor inteded?
A. A hazard
B. A peril
C. A risk
D. An occurrence
D
Products Liability coverage would insure damages that arise from which of the following
situations?
A. A bicycle rider is injured when a wheel malfunctions
B. An employer fired an employee
C. A customer fell on a wet floor
D. An employee dropped a TV he was working on
A
If an insured intentionally conceals a material fact about an auto to be covered by a
policy, coverage may be:
A. Unaffected
B. Voided
C. Premium increased
D. Cancelled at renewal
B
In a Commercial General Liability policy, medical payment expenses MUST be:
A. Incurred within 3 years
B. Reported within 3 years
C. Reported within one year
D. Incurred immediately
C
The attempt to restore an insured to the insured's previous financial condition before the
loss occurred is BEST described as:
A. Gain
B. Repayment
C. Rebating
D. Indemnification
D
, The Arbitration clause in a Personal Auto policy would be used in which of the following
circumstances?
A. The insured and the insurance company cannot reach an agreement regarding the
settlement of a claim
B. The insurer pays the insured for a loss caused by someone else
C. The insured and the insurance company cannot reach an agreement on a UN/UIM
claim
D. Allows the insured to abandon salvage
A
Which of the following individuals is a named insured under a Personal Auto policy?
A. Anyone driving the insured vehicle
B. A person who is listed in the Declarations section
C. Your child under the legal driving age
D. The mechanic working on your car
B
In an application for marine insurance, a yacht owner states that the yacht will only be
sailed on inland waters. If the insured subsequently sails the yacht on the seas,
coverage may be denied because the insured has breached:
A. A misrepresentation
B. A warranty
C. A promise
D. A representation
B
Under a Fidelity Bond, which of the following individuals is considered the obligee?
A. An employee
B. A visitor to the property
C. An employer
D. A secretary
C
An insurable binder is best described as:
A. Temporary short-term evidence of coverage
B. Evidence of coverage as long as you own the property
C. Evidence of coverage for 1 week
D. Evidence of coverage until you cancel
A
An insured may cancel a Personal Auto Policy by taking which of the following actions?
A. Give written notice to the insurer
B. Calling the insurer
C. Selling the auto
D. Buying a new auto
