Louisiana Property and Casualty Practice Exam Questions & Answers 100% Verified

What is a hazard? - ANSWER-An increase in the possibility that a loss might occur the purpose of insurance is to? - ANSWER-Transfer risk from a person, business, or organization to an insurance company that agrees to pay for losses in exchange for a premium. mutual company - ANSWER-type of insurance company in which the policyholder is considered an owner, with the right to vote and share in the profits. $50 - ANSWER-the renewal fee for a Louisiana producer license. b McCarran-Ferguson Act - ANSWER-the federal law that says the federal government can only regulate insurance companies to the extent they are not regulated by state law. Adhesion Contract - ANSWER-an insurance policy is prepared by the insurance company, with little or no input from the insured. this means that an insurance policy is a HO-6 - ANSWER-an individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which Homeowners form? experience rating - ANSWER-what rating method involves modifying the premium based on the insured's loss experience over a specified period of time? pain and suffering - ANSWER-which type of benefits is generally not provided by a state's workers compensation law? foreign - ANSWER-which of the following describes an insurance company doing business in a state other than the where it is incorporated? open peril policy - ANSWER-type of insurance policy that insures against all risks of loss that are not specifically excluded by the policy? replacement cost-depreciation - ANSWER-which of the following describes actual cash value? Actual Cash Value (ACV) - ANSWER-Recplacement Cost - Depreciation Cost $5000 - ANSWER-an insured purchased new furniture for $6000. At the time of a fire loss, it had depreciated $2000. The same furniture will cost $7000 to replace. What is the actual cash value of the destroyed furniture? Loss of income resulting from property damage at the insured's property - ANSWER-the primary purpose of the business income coverage forms is to reimburse the insured for? HO-2 - ANSWER-the homeowners form that provides open peril coverage on the dwelling and broad coverage on personal property is the... damage from an explosion caused by the centrifugal force of moving parts - ANSWER-which of the following losses to covered equipment would be covered under the EQUIPMENT BREAKDOWN PROTECTION coverage form? 10 - ANSWER-according to the cancellation condition in the Common Policy-Conditions form, if the insurance company is cancelling a Commercial Package policy for no