Property and casualty insurance Exam Questions and Answers Part one

Property and casualty insurance Exam Questions and Answers Part one A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of - Coercion. A builder's risk form is most often written as which of the following? - Completed value form A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered - Vacant. A business using its own trucks to move its own cargo would insure the cargo using - Motor truck cargo - owners form. A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT - Workers compensation coverage A commercial property special form covers property in transit up to - $5,000. A common exclusion found under physical damage to your auto includes - Mechanical breakdown. A licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license? - The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible. A meteorite hits the insured's car, causing damage. Under which of the following coverages in a personal auto policy would this loss be paid? - Other-than-collision 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? - The loss is payable to the insured and the mortgagee. A municipality can protect itself against the construction or repair of properties that do not conform to the building codes established by ordinance by requiring the contractors to obtain - License and permit bonds. A participating insurance policy may do which of the following? - Pay dividends to the policyowner A person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT - Be responsible for at least 25% of total commissions collected by the office that he or she manages. A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard? - Morale A person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the - Additional insured. A premium discount is the term that describes when an insured owes a total standard premium greater than - $5,000. A producer licensed in Pennsylvania must notify the Insurance Department of any change of address in his or her residence or business address within how many days? - 30 A ranchowners policy is most similar to which of the following? - Homeowners A recent college graduate bought a new car and is trying to get automobile insurance on it as required by the lienholder. After being rejected by several insurance companies due to his driving record, he finally talked to an agent who can get him coverage. His agent called him a residual market risk. From which type of automobile insurance plan can the applicant purchase insurance? - Assigned risk A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy? - Lost revenues from the restaurant A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession? - Trailer interchange coverage A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1