Louisiana Property and Casualty Missed Practice Exam Questions and Correct Answers

who is NOT considered an employee in a commercial general liability (CGL) policy? A. temporary worker B. leased worker C. full-time worker D. Part-time worker A (in CGL policy, a temporary worker is not considered an employee) The national do not call registry was created to regulate A. telemarketers B. field underwriters C. Insurers D. insurance solicitors A In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A. they provide information about a customers character and reputation B. the customer has no knowledge of this action C. The consumer's associates, friends, and neighbors provide the report's data. D. they provide additional information from an outside source about a particular risk. C (reports are provided from an outside source about a customer's character. both reports are used under Fair Credit Reporting Act) an insurance company assures its new policy holders that their premium costs will not increase for a period of at least five years. however due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? A. unfair discrimination B. erros and omissions C. fraud D. defamation C (any falsely omissions of material fraud are considered unlawful insurance fraud) a premium discount is the term that describes when an insured owes a total standard premium greater than A. $15,000 B. $1,000 C. $5,000 D. $10,000 C (loss sustained crime coverage pays for losses that occur during the policy period and are found for up to 1 year after the policy is terminated) Which type of commercial crime policy coverage is triggered by a loss that happens during the policy period, but is not necessarily discovered during the policy period? A. loss sustained form B. retroactive form C. mysterious disappearance form D. discovery form A (loss sustained crime coverage pays for losses that occur during the policy period and are found for up to 1 year after the policy is terminated) an insurance producer fails to obtain automobile insurance for a client after agreeing to do so. this client is involved in an automobile accident after running a red light and is found to be at fault. the damage to the other vehicle totals $5,000. which statement regarding the producer's errors and omissions liability policy is true? A. it will provide coverage because the damage to the client resulted from the producers negligence B. it will not provide coverage; such physical damage to property is not covered C. it will not provide coverage because the property damage resulted from the client breaking the law D. it. will provide coverage because punitive damages have been awarded. A (Errors and omissions coverage protects insurance producers and brokers from financial losses they may suffer if an insured sues to recover his or her financial loss due to the producer giving incorrect advice or not informing the insured of important issues)