Property and Casualty Insurance Licensing Exam Questions & Answers

Property and Casualty Insurance Licensing Exam Questions & Answers-To prevent recovery beyond the amount of the insured's actual loss, the policy will contain: - An Other Insurance Clause Collision coverage of an auto policy covers: a) road damage to the tires b) upset of the vehicle c) frozen engine block d) falling objects - B) upset of the vehicle The maximum amount of payable for all losses resulting from one event is known as the: a) occurrence limit b) aggregate limit - a) occurrence limit Which of the following is a cause of loss form? a) declarations form b) proof of loss form c) garage keepers' form d) basic form - d) Basic form The minimum flood deductible is: a) $100 b) $250 c) $500 d) $1000 - c) $500 The insured intentionally did not inform the insurer that the insured owned only 35% of the property. The insurer can void the policy for: a) conditional coverage b) misrepresentation c) error d) concealment - d) concealment Which of the following is NOT a defense against negligence? a) contributory negligence b) statues of limitations c) presumption of negligence d) assumption of risk - c) presumption of negligence The presumed authority necessary to carry out the producer's routine tasks is known as: a) expressed authority b) implied authority - b) implied authority Which of the following statements regarding the Towing and Labor endorsement is false? a) it will pay to the limit stated in the endorsement each time a covered vehicle is disabled b) there is no coverage for roadside labor costs c) there is no deductible d) none of the above - b) there is no coverage for roadside labor costs A licensee may violate federal law and be subject to a fine and prison for doing which of the following? a) selling insurance w/ a nonresident license b) sending threatening letters to the state insurance regulator c) fraudulently telling an insured a claim isn't covered on the policy d) murdering an applicant - b) sending threatening letters to the state insurance regulator