Louisiana Property & Casualty Exam - PSI &
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A agent's license may be suspended or revoked for all of the following reasons
EXCEPT... - CORRECT ANSWER: b) Sharing commissions with another agent.
The Commissioner has the power to suspend, revoke, or refuse to renew a producer's
license for failure to comply with the Insurance Code or licensing regulations, as well as
for fraud and failure to pay income taxes, among other violations. Sharing commissions
is allowed as long as both agents are properly licensed.
A liability policy that provides coverage for a claim for injury or damage if the claim is
first reported or filed against the insured during the policy period is called... - CORRECT
ANSWER: Claims-made form
A small appliance manufacturer in this state provides products around the globe. A
customer in Switzerland is injured using one of its products. If the appliance
manufacturer is found liable for the damage, why would its commercial general liability
policy cover the customer's claim for bodily injury? - CORRECT ANSWER: b) The
appliance was manufactured in the U.S.
Coverage territory means anywhere in the world if injury or damage results from goods
or products manufactured or sold in a coverage territory.
According to the Insured Duties after a Loss provision in homeowners policies, in the
event of loss, the insured must do all of the following EXCEPT... - CORRECT ANSWER:
a) Promptly hire an adjuster to evaluate the property damage.
, Hiring an adjuster is not one of the requirements for the insured. The rest of the options
are required insured's duties.
All of the following are true about the cancellation provision of a commercial insurance
policy EXCEPT... - CORRECT ANSWER: a) The insurer is required to provide proof that
the insured received the cancellation notice prior to cancelling the policy.
If the notice of cancellation is mailed, the insurance company is not required to prove
that the insured actually received the notice. It is required to prove only it was mailed to
the first named insured at the mailing address as shown on the policy.
An applicant may challenge information discovered as a result of an investigative
consumer report under which of the following Acts? - CORRECT ANSWER: a) Fair
Credit Reporting Act
The federal Fair Credit Reporting Act regulates consumer investigative reports that are
ordered in connection with applications for credit, insurance or employment. If an
insurer takes adverse action against an applicant based upon incorrect information
received in a credit report, the Act contains procedures for the applicant to follow in
order to get it corrected, without the need to file a lawsuit.
An insured has $5,000 of medical coverage under a personal auto policy at the time of a
covered accident. The insured and 3 passengers are injured. The insured's medical
expenses are $8,000. The first passenger's total $4,000; the second passenger's total
$6,500; and the third passenger's total $1,200. How much will the policy pay under the
medical payments coverage? - CORRECT ANSWER: c) $15,200
The medical payments coverage is provided by a limit of liability per person. In this
example, the limit for the policy is $5,000 per person, so the policy will pay the
maximum ($10,000) for the insured and the second passenger because their medical
expenses exceed the limit. All of the expenses for the first passenger and third
passenger would be paid ($5,200). The grand total paid under medical expenses is
$15,200.
ExamFX Latest Update 2024-2025 Actual Exam
from Credible Source with Questions and 100%
Verified Detailed Correct Answers Guaranteed
A+ Approved by Professor
A agent's license may be suspended or revoked for all of the following reasons
EXCEPT... - CORRECT ANSWER: b) Sharing commissions with another agent.
The Commissioner has the power to suspend, revoke, or refuse to renew a producer's
license for failure to comply with the Insurance Code or licensing regulations, as well as
for fraud and failure to pay income taxes, among other violations. Sharing commissions
is allowed as long as both agents are properly licensed.
A liability policy that provides coverage for a claim for injury or damage if the claim is
first reported or filed against the insured during the policy period is called... - CORRECT
ANSWER: Claims-made form
A small appliance manufacturer in this state provides products around the globe. A
customer in Switzerland is injured using one of its products. If the appliance
manufacturer is found liable for the damage, why would its commercial general liability
policy cover the customer's claim for bodily injury? - CORRECT ANSWER: b) The
appliance was manufactured in the U.S.
Coverage territory means anywhere in the world if injury or damage results from goods
or products manufactured or sold in a coverage territory.
According to the Insured Duties after a Loss provision in homeowners policies, in the
event of loss, the insured must do all of the following EXCEPT... - CORRECT ANSWER:
a) Promptly hire an adjuster to evaluate the property damage.
, Hiring an adjuster is not one of the requirements for the insured. The rest of the options
are required insured's duties.
All of the following are true about the cancellation provision of a commercial insurance
policy EXCEPT... - CORRECT ANSWER: a) The insurer is required to provide proof that
the insured received the cancellation notice prior to cancelling the policy.
If the notice of cancellation is mailed, the insurance company is not required to prove
that the insured actually received the notice. It is required to prove only it was mailed to
the first named insured at the mailing address as shown on the policy.
An applicant may challenge information discovered as a result of an investigative
consumer report under which of the following Acts? - CORRECT ANSWER: a) Fair
Credit Reporting Act
The federal Fair Credit Reporting Act regulates consumer investigative reports that are
ordered in connection with applications for credit, insurance or employment. If an
insurer takes adverse action against an applicant based upon incorrect information
received in a credit report, the Act contains procedures for the applicant to follow in
order to get it corrected, without the need to file a lawsuit.
An insured has $5,000 of medical coverage under a personal auto policy at the time of a
covered accident. The insured and 3 passengers are injured. The insured's medical
expenses are $8,000. The first passenger's total $4,000; the second passenger's total
$6,500; and the third passenger's total $1,200. How much will the policy pay under the
medical payments coverage? - CORRECT ANSWER: c) $15,200
The medical payments coverage is provided by a limit of liability per person. In this
example, the limit for the policy is $5,000 per person, so the policy will pay the
maximum ($10,000) for the insured and the second passenger because their medical
expenses exceed the limit. All of the expenses for the first passenger and third
passenger would be paid ($5,200). The grand total paid under medical expenses is
$15,200.
