Property and Casualty Exam- Louisiana/ 250
Q&A/ Already Graded A+.
What is surplus lines insurance? - Answer: Insurance placed with an unauthorized insurer
How long is a waiting period upon purchase of flood coverage through NFIP? - Answer: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty Association
comes from - Answer: Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - Answer: $250.
Rates that are established based on the similarities of the risk with other risks are known as -
Answer: Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following EXCEPT -
Answer: A third party breaks a leg when the insured knocks him down.
Page 1 of 30
,The process an insurer uses to evaluate applications and determine if a policy should be issued
and on what terms, conditions, and rates is known as - Answer: Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA to the
year - Answer: 2020
According to the Fair Credit Reporting Act, all of the following would be considered negative
information about a consumer EXCEPT - Answer: Disputes regarding consumer report
information
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the
event of a loss, the insured must notify - Answer: Any of the insurers providing coverage.
The policy conditions define - Answer: How parties to the contract must act following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws governing
contracts which require all of the following elements EXCEPT - Answer: Conditions.
The value placed on property insured under a fire insurance policy is used to determine the
policy's - Answer: Premium.
Shipbuilders and repairers are covered by the - Answer: U.S. Longshore and Harbor Workers
Compensation Act.
Which of the following terms refers to a person's ability to do some work or the need to do
alternative work? - Answer: Temporary partial disability
Insurer examinations must occur no less frequently than every - Answer: 5 years.
Page 2 of 30
, If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of
premium, how much prior notice must the insurer give to the first named insured? - Answer: 10
days
The Residential Condominium Building Association Policy (RCBAP) is used for residential
condominium building associations to cover the entire building under one policy. Which of the
following statements about RCBAP is true? - Answer: It does not protect the individual owner
from loss to personal property owned exclusively by the unit owner.
Replacement cost coverage is provided in both the broad and special form dwelling policies
when - Answer: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that occurs
when a business must suspend operations because of a direct loss. Which of the following
terms best describes the nature of this type of coverage? - Answer: Time element
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? - Answer: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily
happen during the policy period but was revealed during the policy period? - Answer: Discovery
form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must - Answer: Respond to the consumer's
complaint.
Page 3 of 30
Q&A/ Already Graded A+.
What is surplus lines insurance? - Answer: Insurance placed with an unauthorized insurer
How long is a waiting period upon purchase of flood coverage through NFIP? - Answer: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty Association
comes from - Answer: Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - Answer: $250.
Rates that are established based on the similarities of the risk with other risks are known as -
Answer: Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following EXCEPT -
Answer: A third party breaks a leg when the insured knocks him down.
Page 1 of 30
,The process an insurer uses to evaluate applications and determine if a policy should be issued
and on what terms, conditions, and rates is known as - Answer: Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA to the
year - Answer: 2020
According to the Fair Credit Reporting Act, all of the following would be considered negative
information about a consumer EXCEPT - Answer: Disputes regarding consumer report
information
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the
event of a loss, the insured must notify - Answer: Any of the insurers providing coverage.
The policy conditions define - Answer: How parties to the contract must act following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws governing
contracts which require all of the following elements EXCEPT - Answer: Conditions.
The value placed on property insured under a fire insurance policy is used to determine the
policy's - Answer: Premium.
Shipbuilders and repairers are covered by the - Answer: U.S. Longshore and Harbor Workers
Compensation Act.
Which of the following terms refers to a person's ability to do some work or the need to do
alternative work? - Answer: Temporary partial disability
Insurer examinations must occur no less frequently than every - Answer: 5 years.
Page 2 of 30
, If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of
premium, how much prior notice must the insurer give to the first named insured? - Answer: 10
days
The Residential Condominium Building Association Policy (RCBAP) is used for residential
condominium building associations to cover the entire building under one policy. Which of the
following statements about RCBAP is true? - Answer: It does not protect the individual owner
from loss to personal property owned exclusively by the unit owner.
Replacement cost coverage is provided in both the broad and special form dwelling policies
when - Answer: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that occurs
when a business must suspend operations because of a direct loss. Which of the following
terms best describes the nature of this type of coverage? - Answer: Time element
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? - Answer: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily
happen during the policy period but was revealed during the policy period? - Answer: Discovery
form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must - Answer: Respond to the consumer's
complaint.
Page 3 of 30
