Property and casualty insurance Exam
Questions and Answers Part one
Which |of |the |following |are |the |authorities |that |an |agent |can |hold? |- |VERIFIED |ANSWER✔✔-Express |
and |implied
Which |of |the |following |terms |refers |to |such |disabilities |the |loss |of |a |limb, |hearing |, |or |eye |sight? |- |
VERIFIED |ANSWER✔✔-Permanent |partial |disability
Who |is |NOT |considered |an |employee |in |an |commercial |general |liability |(CGL) |policy? |- |VERIFIED |
ANSWER✔✔-Temporary |worker
The |major |portion |of |the |premium |of |an |equipment |breakdown |policy |pays? |- |VERIFIED |ANSWER✔✔-
For |inspections |and |examinations
An |insured |owns |a |building |valued |at |$400,000. |To |comply |with |the |80% |coinsurance |provision |of |his |
insurance |policy, |how |, |much |should |he |insure |the |property |for? |- |VERIFIED |ANSWER✔✔-80% |of |the |
property's |replacement |cost |or |more
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 |- |VERIFIED |ANSWER✔✔-Respond |to |the |
consumer's |complaint.
All |of |the |following |are |found |in |the |declarations |section |of |a |policy |EXCEPT |the |- |VERIFIED |
ANSWER✔✔-Exclusions.
The |cost |of |restoring |farm |records |is |an |additional |coverage |offered |under |a |farm |policy. |How |much |
will |the |policy |pay |to |restore |the |records? |- |VERIFIED |ANSWER✔✔-Up |to |$2,000
All |of |the |following |could |be |considered |rebates |if |offered |to |an |insured |in |the |sale |of |insurance |
EXCEPT |- |VERIFIED |ANSWER✔✔-Dividends |from |a |mutual |insurer.
,Which |of |the |following |may |be |covered |by |electronic |data |processing |coverage |form |under |an |inland |
marine |policy? |- |VERIFIED |ANSWER✔✔-a) |Computer |hardware |that |is |specifically |scheduled.
b) |Extra |expense |the |insured |incurs |to |continue |the |business |following |a |loss.
c) |Data |processing |media, |including |magnetic |tapes |or |paper |tapes, |punch |cards |and |discs
The |party |to |a |surety |or |fidelity |bond |who |promises |to |fulfill |the |obligation |is |the |- |VERIFIED |
ANSWER✔✔-Principal
The |transfer |of |money |from |inside |a |banking |premises |to |a |person |other |than |a |messenger |outside |
those |premises |or |to |a |place |outside |those |premises |is |covered |under |which |commercial |crime |
coverage? |- |VERIFIED |ANSWER✔✔-Computer |fraud
Which |of |the |following |would |NOT |be |covered |under |the |liability |section |of |a |personal |auto |policy? |- |
VERIFIED |ANSWER✔✔-Bodily |injury |is |caused |by |the |insured's |negligence |while |driving |a |three-wheel |
all-terrain |vehicle.
When |a |producer |holding |a |certificate |or |a |broker's |license |has |a |change |in |his/her |residence |or |
business |address, |he/she |must |notify |the |Department |of |Insurance |and |any |company |for |which |the |
producer |holds |an |appointment |within |- |VERIFIED |ANSWER✔✔-30 |days.
What |will |happen |if |a |house |covered |by |a |standard |mortgage |clause |is |a |total |loss? |- |VERIFIED |
ANSWER✔✔-The |insurer |pays |the |mortgagee |according |to |the |mortgagee's |interest |in |the |property.
What |is |the |civil |penalty |for |violating |a |cease |and |desist |order |of |the |Commissioner? |- |VERIFIED |
ANSWER✔✔-$10,000
The |Business |Pursuits |endorsement |under |Section |II |of |a |homeowners |policy |will |cover |all |of |the |
following |EXCEPT |- |VERIFIED |ANSWER✔✔-Business |liability.
If |a |property |is |covered |by |Company |A |for |$20,000 |and |Company |B |covers |the |same |property |for |
$40,000, |how |much |will |Company |A |pay |on |a |$24,000 |loss? |- |VERIFIED |ANSWER✔✔-$8,000
, The |risk |management |technique |that |is |used |to |prevent |a |specific |loss |by |not |exposing |oneself |to |
that |activity |is |called |- |VERIFIED |ANSWER✔✔-Avoidance.
In |a |farm |policy, |any |cost |incurred |by |the |insurer |for |the |investigation |or |defense |of |a |claim |will |be |
paid |by |- |VERIFIED |ANSWER✔✔-The |insurer.
Which |of |the |following |entities |must |approve |all |continuing |education |courses |in |this |state? |- |
VERIFIED |ANSWER✔✔-The |Commissioner
An |applicant |knowingly |fails |to |communicate |information |that |would |help |an |underwriter |make |a |
sound |decision |regarding |coverage. |This |is |an |example |of |- |VERIFIED |ANSWER✔✔-Concealment
A |common |exclusion |found |under |physical |damage |to |your |auto |includes |- |VERIFIED |ANSWER✔✔-
Mechanical |breakdown.
Which |of |the |following |is |true |regarding |a |risk |retention |group? |- |VERIFIED |ANSWER✔✔-It |is |a |
liability |insurance |company |owned |by |its |members.
Which |of |the |following |best |describes |a |misrepresentation? |- |VERIFIED |ANSWER✔✔-Issuing |sales |
material |with |exaggerated |statements |about |policy |benefits
A |builder's |risk |form |is |most |often |written |as |which |of |the |following? |- |VERIFIED |ANSWER✔✔-
Completed |value |form
An |insured |has |a |liability |policy |that |sets |the |amount |for |all |claims |that |arise |from |a |single |incident |at
|$50,000. |Which |type |of |limit |of |liability |does |this |insured's |policy |have? |- |VERIFIED |ANSWER✔✔-Per |
occurrence
Which |of |the |following |is |an |example |of |a |protective |safeguard |in |a |businessowners |policy? |- |
VERIFIED |ANSWER✔✔-Automatic |sprinkler |system
Questions and Answers Part one
Which |of |the |following |are |the |authorities |that |an |agent |can |hold? |- |VERIFIED |ANSWER✔✔-Express |
and |implied
Which |of |the |following |terms |refers |to |such |disabilities |the |loss |of |a |limb, |hearing |, |or |eye |sight? |- |
VERIFIED |ANSWER✔✔-Permanent |partial |disability
Who |is |NOT |considered |an |employee |in |an |commercial |general |liability |(CGL) |policy? |- |VERIFIED |
ANSWER✔✔-Temporary |worker
The |major |portion |of |the |premium |of |an |equipment |breakdown |policy |pays? |- |VERIFIED |ANSWER✔✔-
For |inspections |and |examinations
An |insured |owns |a |building |valued |at |$400,000. |To |comply |with |the |80% |coinsurance |provision |of |his |
insurance |policy, |how |, |much |should |he |insure |the |property |for? |- |VERIFIED |ANSWER✔✔-80% |of |the |
property's |replacement |cost |or |more
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 |- |VERIFIED |ANSWER✔✔-Respond |to |the |
consumer's |complaint.
All |of |the |following |are |found |in |the |declarations |section |of |a |policy |EXCEPT |the |- |VERIFIED |
ANSWER✔✔-Exclusions.
The |cost |of |restoring |farm |records |is |an |additional |coverage |offered |under |a |farm |policy. |How |much |
will |the |policy |pay |to |restore |the |records? |- |VERIFIED |ANSWER✔✔-Up |to |$2,000
All |of |the |following |could |be |considered |rebates |if |offered |to |an |insured |in |the |sale |of |insurance |
EXCEPT |- |VERIFIED |ANSWER✔✔-Dividends |from |a |mutual |insurer.
,Which |of |the |following |may |be |covered |by |electronic |data |processing |coverage |form |under |an |inland |
marine |policy? |- |VERIFIED |ANSWER✔✔-a) |Computer |hardware |that |is |specifically |scheduled.
b) |Extra |expense |the |insured |incurs |to |continue |the |business |following |a |loss.
c) |Data |processing |media, |including |magnetic |tapes |or |paper |tapes, |punch |cards |and |discs
The |party |to |a |surety |or |fidelity |bond |who |promises |to |fulfill |the |obligation |is |the |- |VERIFIED |
ANSWER✔✔-Principal
The |transfer |of |money |from |inside |a |banking |premises |to |a |person |other |than |a |messenger |outside |
those |premises |or |to |a |place |outside |those |premises |is |covered |under |which |commercial |crime |
coverage? |- |VERIFIED |ANSWER✔✔-Computer |fraud
Which |of |the |following |would |NOT |be |covered |under |the |liability |section |of |a |personal |auto |policy? |- |
VERIFIED |ANSWER✔✔-Bodily |injury |is |caused |by |the |insured's |negligence |while |driving |a |three-wheel |
all-terrain |vehicle.
When |a |producer |holding |a |certificate |or |a |broker's |license |has |a |change |in |his/her |residence |or |
business |address, |he/she |must |notify |the |Department |of |Insurance |and |any |company |for |which |the |
producer |holds |an |appointment |within |- |VERIFIED |ANSWER✔✔-30 |days.
What |will |happen |if |a |house |covered |by |a |standard |mortgage |clause |is |a |total |loss? |- |VERIFIED |
ANSWER✔✔-The |insurer |pays |the |mortgagee |according |to |the |mortgagee's |interest |in |the |property.
What |is |the |civil |penalty |for |violating |a |cease |and |desist |order |of |the |Commissioner? |- |VERIFIED |
ANSWER✔✔-$10,000
The |Business |Pursuits |endorsement |under |Section |II |of |a |homeowners |policy |will |cover |all |of |the |
following |EXCEPT |- |VERIFIED |ANSWER✔✔-Business |liability.
If |a |property |is |covered |by |Company |A |for |$20,000 |and |Company |B |covers |the |same |property |for |
$40,000, |how |much |will |Company |A |pay |on |a |$24,000 |loss? |- |VERIFIED |ANSWER✔✔-$8,000
, The |risk |management |technique |that |is |used |to |prevent |a |specific |loss |by |not |exposing |oneself |to |
that |activity |is |called |- |VERIFIED |ANSWER✔✔-Avoidance.
In |a |farm |policy, |any |cost |incurred |by |the |insurer |for |the |investigation |or |defense |of |a |claim |will |be |
paid |by |- |VERIFIED |ANSWER✔✔-The |insurer.
Which |of |the |following |entities |must |approve |all |continuing |education |courses |in |this |state? |- |
VERIFIED |ANSWER✔✔-The |Commissioner
An |applicant |knowingly |fails |to |communicate |information |that |would |help |an |underwriter |make |a |
sound |decision |regarding |coverage. |This |is |an |example |of |- |VERIFIED |ANSWER✔✔-Concealment
A |common |exclusion |found |under |physical |damage |to |your |auto |includes |- |VERIFIED |ANSWER✔✔-
Mechanical |breakdown.
Which |of |the |following |is |true |regarding |a |risk |retention |group? |- |VERIFIED |ANSWER✔✔-It |is |a |
liability |insurance |company |owned |by |its |members.
Which |of |the |following |best |describes |a |misrepresentation? |- |VERIFIED |ANSWER✔✔-Issuing |sales |
material |with |exaggerated |statements |about |policy |benefits
A |builder's |risk |form |is |most |often |written |as |which |of |the |following? |- |VERIFIED |ANSWER✔✔-
Completed |value |form
An |insured |has |a |liability |policy |that |sets |the |amount |for |all |claims |that |arise |from |a |single |incident |at
|$50,000. |Which |type |of |limit |of |liability |does |this |insured's |policy |have? |- |VERIFIED |ANSWER✔✔-Per |
occurrence
Which |of |the |following |is |an |example |of |a |protective |safeguard |in |a |businessowners |policy? |- |
VERIFIED |ANSWER✔✔-Automatic |sprinkler |system
