LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
A mortgage company is named as a loss payee on the insured's homeowners
policy, under the standard mortgage clause. If the insured suffers a loss due to a
fire, which of the following is true?
a) The entire loss is payable to the insured.
b) The loss is payable to the insured and the mortgagee.
c) The mortgagee should submit a claim to its insurer, and the insured should
submit a claim to the HO policy.
d) The entire loss is payable to the mortgagee.
b) The loss is payable to the insured and the mortgagee.
Loss is payable to the insured and mortgagee to protect the mortgage company's
interest. This prevents the insured from cashing the check and not completing
repairs.
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?
a) Bodily injury liability policy
b) Contractual liability policy
c) Personal liability policy
d) Property damage liability policy
b) Contractual liability policy
With this coverage, the insurer agrees to pay for bodily injury or property damage
liability which the insured has agreed to assume under a written contractual
agreement.
In a personal auto policy, the medical payments coverage is similar to
a) Accident insurance, because it pays medical expenses regardless of fault.
b) Accident insurance, because it has the same limits.
c) Bodily injury coverage, because it pays the insured's doctor bills.
d) Bodily injury coverage, because it provides legal protection if the insured
causes injuries to others.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
a) Accident insurance, because it pays medical expenses regardless of fault.
Medical payments will pay for accidental bodily injury of an insured, regardless
of fault or auto. It will pay medical expenses of others occupying the insured auto.
The designation symbols used in commercial auto policies can be found in which
policy section?
a) Conditions
b) Covered Auto
c) Liability Coverage
d) Definitions
b) Covered Auto
Section I - Covered Auto of a commercial auto policy explains the designation
symbols used in that coverage.
Which of the following liability exposures is most likely for a small specialty
clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure
d) Premises liability exposure
The premises liability exposure exists when there is use of the premises.
Operations liability exposure relates to activities in addition to use. Product
liability exposure is the possibility that the public might be injured by the
product. Completed operations liability refers to liability for work already
performed or completed. For a boutique retail store, the only possible liability
would arise from customer injury while on the premises.
All of the following are true of Coverage B - Other Structures EXCEPT
a) It must be added by endorsement to a homeowners policy.
b) This coverage is not applicable on the HO-4 policy form.
c) The amount of coverage provided by Coverage B is an amount equal to 10% of
Coverage A.
d) Land where the other structures are located is not covered.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
a) It must be added by endorsement to a homeowners policy.
Homeowners policies automatically provide an amount of insurance in Coverage
B that is equal to 10% of the amount written as Coverage A. This amount may be
increased by endorsement.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
All of the following are supplemental payments included in the liability section
of a personal auto policy EXCEPT
a) Up to $100 for the cost to secure the release of a vehicle from an impoundment
lot following a covered accident.
b) Up to $200 a day for loss of earnings due to attendance at hearings or trials.
c) Premiums on appeal bonds in any suit the insurer defends.
d) Up to $250 for bail bonds required because of a covered accident.
a) Up to $100 for the cost to secure the release of a vehicle from an impoundment
lot following a covered accident.
A personal auto policy does not pay the cost of the release of a vehicle
impounded by a law enforcement agency.
A large antenna is damaged when a tree branch hits an insured farm dwelling
during a storm. Coverage A of a farm property coverage form would insure
damages for this occurrence up to
a) $1,000.
b) $2,000.
c) $3,000.
d) $4,000.
Antennas, towers, and satellite dishes attached to the dwelling are covered under
Coverage A, but have a special limit of insurance of $1,000 in any 1 occurrence.
a) $1,000.
Antennas, towers, and satellite dishes attached to the dwelling are covered under
Coverage A, but have a special limit of insurance of $1,000 in any 1 occurrence.
Charla wants to serve as a producer for Commissions Galore Insurance Company.
In addition to obtaining her producer's license, what else must happen before she
can officially transact insurance for CGIC?
a) She must submit a list of 5 references to CGIC.
b) She must be appointed by the Commissioner.
c) She must be appointed specifically by CGIC.
d) She must get a certificate of authority.
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
A mortgage company is named as a loss payee on the insured's homeowners
policy, under the standard mortgage clause. If the insured suffers a loss due to a
fire, which of the following is true?
a) The entire loss is payable to the insured.
b) The loss is payable to the insured and the mortgagee.
c) The mortgagee should submit a claim to its insurer, and the insured should
submit a claim to the HO policy.
d) The entire loss is payable to the mortgagee.
b) The loss is payable to the insured and the mortgagee.
Loss is payable to the insured and mortgagee to protect the mortgage company's
interest. This prevents the insured from cashing the check and not completing
repairs.
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?
a) Bodily injury liability policy
b) Contractual liability policy
c) Personal liability policy
d) Property damage liability policy
b) Contractual liability policy
With this coverage, the insurer agrees to pay for bodily injury or property damage
liability which the insured has agreed to assume under a written contractual
agreement.
In a personal auto policy, the medical payments coverage is similar to
a) Accident insurance, because it pays medical expenses regardless of fault.
b) Accident insurance, because it has the same limits.
c) Bodily injury coverage, because it pays the insured's doctor bills.
d) Bodily injury coverage, because it provides legal protection if the insured
causes injuries to others.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
a) Accident insurance, because it pays medical expenses regardless of fault.
Medical payments will pay for accidental bodily injury of an insured, regardless
of fault or auto. It will pay medical expenses of others occupying the insured auto.
The designation symbols used in commercial auto policies can be found in which
policy section?
a) Conditions
b) Covered Auto
c) Liability Coverage
d) Definitions
b) Covered Auto
Section I - Covered Auto of a commercial auto policy explains the designation
symbols used in that coverage.
Which of the following liability exposures is most likely for a small specialty
clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure
d) Premises liability exposure
The premises liability exposure exists when there is use of the premises.
Operations liability exposure relates to activities in addition to use. Product
liability exposure is the possibility that the public might be injured by the
product. Completed operations liability refers to liability for work already
performed or completed. For a boutique retail store, the only possible liability
would arise from customer injury while on the premises.
All of the following are true of Coverage B - Other Structures EXCEPT
a) It must be added by endorsement to a homeowners policy.
b) This coverage is not applicable on the HO-4 policy form.
c) The amount of coverage provided by Coverage B is an amount equal to 10% of
Coverage A.
d) Land where the other structures are located is not covered.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
a) It must be added by endorsement to a homeowners policy.
Homeowners policies automatically provide an amount of insurance in Coverage
B that is equal to 10% of the amount written as Coverage A. This amount may be
increased by endorsement.
, LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM STUDY GUIDE | ACTUAL
WITH EXPERT VERIFIED QUESTIONS AND
ANSWERS WITH RATIONALES | GUARANTEED
PASS
All of the following are supplemental payments included in the liability section
of a personal auto policy EXCEPT
a) Up to $100 for the cost to secure the release of a vehicle from an impoundment
lot following a covered accident.
b) Up to $200 a day for loss of earnings due to attendance at hearings or trials.
c) Premiums on appeal bonds in any suit the insurer defends.
d) Up to $250 for bail bonds required because of a covered accident.
a) Up to $100 for the cost to secure the release of a vehicle from an impoundment
lot following a covered accident.
A personal auto policy does not pay the cost of the release of a vehicle
impounded by a law enforcement agency.
A large antenna is damaged when a tree branch hits an insured farm dwelling
during a storm. Coverage A of a farm property coverage form would insure
damages for this occurrence up to
a) $1,000.
b) $2,000.
c) $3,000.
d) $4,000.
Antennas, towers, and satellite dishes attached to the dwelling are covered under
Coverage A, but have a special limit of insurance of $1,000 in any 1 occurrence.
a) $1,000.
Antennas, towers, and satellite dishes attached to the dwelling are covered under
Coverage A, but have a special limit of insurance of $1,000 in any 1 occurrence.
Charla wants to serve as a producer for Commissions Galore Insurance Company.
In addition to obtaining her producer's license, what else must happen before she
can officially transact insurance for CGIC?
a) She must submit a list of 5 references to CGIC.
b) She must be appointed by the Commissioner.
c) She must be appointed specifically by CGIC.
d) She must get a certificate of authority.
