Property and Casualty Exam- Louisiana
Questions with Answers
1. 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: Any of the insurers providing
coverage.
2. The policy conditions define: How parties to the contract must act following a
loss.
3. 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:
Conditions.
4. The value placed on property insured under a fire insurance policy is used to
determine the policy's: Premium.
5. Shipbuilders and repairers are covered by the: U.S. Longshore and Harbor
Workers Compensation Act.
6. Which of the following terms refers to a person's ability to do some work or the need
to do alternative work?: Temporary partial disability
7. Insurer examinations must occur no less frequently than every: 5 years.
8. 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?: 10 days
9. 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?: It does not protect
the individual owner from loss to personal property owned exclu- sively by the unit
owner.
10.What is surplus lines insurance?: Insurance placed with an unauthorized
insurer
11.How long is a waiting period upon purchase of flood coverage through NFIP?:
30 days
12.Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from: Annual assessments paid by member insur- ers.
13.Uninsured Motorist property damage coverage is subject to a deductible of: $250.
14.Rates that are established based on the similarities of the risk with other risks are
known as: Manual rates.
15.The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT: A third party breaks a leg when the insured knocks him down.
16.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:
Underwriting.
17. Terrorism Risk Insurance Program Reauthorization Act of 2015 has extend- ed
,the TRIA to the year: 2020
18.According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT: Disputes regard- ing consumer
report information
19.Replacement cost coverage is provided in both the broad and special form dwelling
policies when: At least 80% of the replacement cost
20.The business income coverage form covers consequential loss of busi- ness
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?:
Time element
21.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?: Contractural liability policy
22.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?: Discovery form
23.Under the Fair Credit Reporting Act, if the consumer challenges the accu- racy of
the information contained in his or her report, the reporting agency must: Respond to
the consumer's complaint.
24.Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
, EXCEPT: On his evening stroll, an employee of an advertising company is injured
while watching a competitor's billboard sign being removed from an advertising
site.
25.An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance
contract does this describe?: Aleatory
26.An uninsured motor vehicle includes all of the following EXCEPT: The vehicle
has no liability bond or insurance in force.
27.Which of the following are the authorities that an agent can hold?: Express and
implied
28.All of the following are supplemental payments found in liability policies EXCEPT:
Costs the insured incurred in hiring an attorney.
29.In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss?: Coverage E
30.A producer who fails to segregate premium monies from his own personal funds is
guilty of: Commingling
31.What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage?: Uninsured motorist
Questions with Answers
1. 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: Any of the insurers providing
coverage.
2. The policy conditions define: How parties to the contract must act following a
loss.
3. 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:
Conditions.
4. The value placed on property insured under a fire insurance policy is used to
determine the policy's: Premium.
5. Shipbuilders and repairers are covered by the: U.S. Longshore and Harbor
Workers Compensation Act.
6. Which of the following terms refers to a person's ability to do some work or the need
to do alternative work?: Temporary partial disability
7. Insurer examinations must occur no less frequently than every: 5 years.
8. 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?: 10 days
9. 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?: It does not protect
the individual owner from loss to personal property owned exclu- sively by the unit
owner.
10.What is surplus lines insurance?: Insurance placed with an unauthorized
insurer
11.How long is a waiting period upon purchase of flood coverage through NFIP?:
30 days
12.Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from: Annual assessments paid by member insur- ers.
13.Uninsured Motorist property damage coverage is subject to a deductible of: $250.
14.Rates that are established based on the similarities of the risk with other risks are
known as: Manual rates.
15.The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT: A third party breaks a leg when the insured knocks him down.
16.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:
Underwriting.
17. Terrorism Risk Insurance Program Reauthorization Act of 2015 has extend- ed
,the TRIA to the year: 2020
18.According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT: Disputes regard- ing consumer
report information
19.Replacement cost coverage is provided in both the broad and special form dwelling
policies when: At least 80% of the replacement cost
20.The business income coverage form covers consequential loss of busi- ness
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?:
Time element
21.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?: Contractural liability policy
22.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?: Discovery form
23.Under the Fair Credit Reporting Act, if the consumer challenges the accu- racy of
the information contained in his or her report, the reporting agency must: Respond to
the consumer's complaint.
24.Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
, EXCEPT: On his evening stroll, an employee of an advertising company is injured
while watching a competitor's billboard sign being removed from an advertising
site.
25.An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance
contract does this describe?: Aleatory
26.An uninsured motor vehicle includes all of the following EXCEPT: The vehicle
has no liability bond or insurance in force.
27.Which of the following are the authorities that an agent can hold?: Express and
implied
28.All of the following are supplemental payments found in liability policies EXCEPT:
Costs the insured incurred in hiring an attorney.
29.In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss?: Coverage E
30.A producer who fails to segregate premium monies from his own personal funds is
guilty of: Commingling
31.What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage?: Uninsured motorist
