Property & Casualty Insurance License Test Exam Updated, Pass the P&C Insurance Licensing Exam, Rated 100%

Property & Casualty Insurance License Test Exam Updated, Pass the P&C Insurance Licensing Exam, Rated 100%-A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but the only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of... - Coercion (This is an example of the illegal practice of coercion.) A builder's risk form is most often written as which of the following? - Completed value form (A building under construction could be insured on reporting forms, but the value of the building should only increase during the policy period. To prevent all the administrative work required for reporting forms, most often completed value forms are used.) A farmer is remodeling his 100-year-old farmhouse. He is in the process of painting the porch and hanging shutters. He keeps his ladder, paint, and other materials used to remodel his home under the porch. Which of the following provides coverage for his remodeling materials? - Coverage A (Coverage A covers materials and supplies used to construct, alter, or repair the dwelling. These materials used to service the dwelling are located on or next to the insured dwelling.) 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 - $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.) A producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license? - Within 1 year of the revocation (If a producer license has been revoked, the producer may file another license application within 1 year form the effective date of revocation, or within 5 years from the date of final court order if judicial review of revocation is sought.) 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 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste? - $1 million (The minimum requirements for haulers of oil and certain categories of hazardous waste in interstate commerce is $1 million.) According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss? - Either part may make a written request for an appraisal (If the insurer and the insured are unable to reach an agreement as to the value of damaged property, either party may make a written request for appraisal.) All of the following are parts of a personal auto policy EXCEPT - Garage coverage (PAP is divided into 6 parts: Liability Coverage, Medical Payments Coverage, Uninsured Motorist Coverage, Coverage for Damage to Your Auto, Duties after an Accident or Loss, and General Provisions, Garage Coverage is a section in a commercial auto policy.) All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT - 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.) All of the following would be eligible for coverage under the dwelling policy EXCEPT - A house that has 5 residential units (Eligibility requires that the dwelling have not more than 4 family units.) An agent offers his clients free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of - Rebating (When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating.) An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroy clothes and luggage with a replacement value of $10,000 and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay? - $16,000 (This loss would be settled on an actual cash value (ACV) basis: $20,000 total for the loss minus $4,000 for depreciation. Remember, the limitation on loss of jewelry applies to the peril of theft only.)