1 Exampromax - Stuvia US
VA P&C Practice Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: Which of the following represents pure risk?
A. Purchase of stock in a new company
B. An investment in real estate
C. Purchase of a lottery ticket
D. Chance of fire in a dwelling
Exampromax - Stuvia US
Ans: D. Chance of fire in a dwelling
Q: WHICH OF THE FOLLOWING IS A PERIL?
A. ATTITUDE TOWARDS SAFETY
B. FIRE
C. DEDUCTIBLE
D. AN EXCLUSION
Ans: B. FIRE
Q: Direct loss refers to:
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions
Ans: A. Fire damage to a dwellings roof
Q: When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
, 2 Exampromax - Stuvia US
B. Replacement Cost
C. Stated Value
D. Salvage Value
Ans: C. Stated Value
Q: There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building at the
time of loss. If the insured moved to a new dwelling 60 days before the loss,
which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
Exampromax - Stuvia US
D. Protection warranty
Ans: B. Vacancy
Q: There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building at the
time of loss. If the insured has a vandalism claim while they are on
vacation, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty
Ans: A. Unoccupancy
Q: When an individual or business causes harm to another, the injured
party will expect their damages to be covered by the person causing the
injury. If the individual or business causing harm will be held responsible
for the damages regardless of negligence, we say they are:
A. Negligent
B. Absolutely liable
C. Vicariously liable
, 3 Exampromax - Stuvia US
D. Not liable
Ans: B. Absolutely liable
Q: When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability
Ans: D. Strict liability
Exampromax - Stuvia US
Q: In a commercial insurance policy, the person with the responsibility of
administering the policy, making payments, etc. is the:
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder
Ans: C. First named insured
Q: All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster
Ans: D. Assist in selecting an insurance adjuster
Q: Which of the following is true regarding the insurer's rights to claim
settlement?
A. The insured must agree to all aspects of the settlement.
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B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's permission.
D. The insured retains complete rights of claim settlement.
Ans: C. The insurer may settle a liability claim without the insured's permission.
Q: Which of the following statements concerning a proof of loss is NOT
true?
A. It is the duty of the insured to submit a proof of loss.
B. The insurer provides the insured with the proof of loss at the appropriate
time
C. A proof of loss details the circumstances of the loss
D. A proof of loss may be oral
Exampromax - Stuvia US
Ans: D. A proof of loss may be oral
Q: A notice of claim to an insurer must include all of the following
EXCEPT:
A. Insured's name
B. Insured's address
C. Name of insured's attorney
D. Description of how the loss occurred
Ans: C. Name of insured's attorney
Q: John has two homeowner's policies in force. Policy A covers the home
for $200,000 and Policy B covers the home for $100,000. The total
insurance in force is $300,000. John has a fire that does $45,000 damage to
the home. How much will Policy A pay?
A. $45,000
B. $0
C. $15,000
D. $30,000
Ans: D. $30,000
VA P&C Practice Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: Which of the following represents pure risk?
A. Purchase of stock in a new company
B. An investment in real estate
C. Purchase of a lottery ticket
D. Chance of fire in a dwelling
Exampromax - Stuvia US
Ans: D. Chance of fire in a dwelling
Q: WHICH OF THE FOLLOWING IS A PERIL?
A. ATTITUDE TOWARDS SAFETY
B. FIRE
C. DEDUCTIBLE
D. AN EXCLUSION
Ans: B. FIRE
Q: Direct loss refers to:
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions
Ans: A. Fire damage to a dwellings roof
Q: When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
, 2 Exampromax - Stuvia US
B. Replacement Cost
C. Stated Value
D. Salvage Value
Ans: C. Stated Value
Q: There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building at the
time of loss. If the insured moved to a new dwelling 60 days before the loss,
which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
Exampromax - Stuvia US
D. Protection warranty
Ans: B. Vacancy
Q: There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building at the
time of loss. If the insured has a vandalism claim while they are on
vacation, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty
Ans: A. Unoccupancy
Q: When an individual or business causes harm to another, the injured
party will expect their damages to be covered by the person causing the
injury. If the individual or business causing harm will be held responsible
for the damages regardless of negligence, we say they are:
A. Negligent
B. Absolutely liable
C. Vicariously liable
, 3 Exampromax - Stuvia US
D. Not liable
Ans: B. Absolutely liable
Q: When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability
Ans: D. Strict liability
Exampromax - Stuvia US
Q: In a commercial insurance policy, the person with the responsibility of
administering the policy, making payments, etc. is the:
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder
Ans: C. First named insured
Q: All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster
Ans: D. Assist in selecting an insurance adjuster
Q: Which of the following is true regarding the insurer's rights to claim
settlement?
A. The insured must agree to all aspects of the settlement.
, 4 Exampromax - Stuvia US
B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's permission.
D. The insured retains complete rights of claim settlement.
Ans: C. The insurer may settle a liability claim without the insured's permission.
Q: Which of the following statements concerning a proof of loss is NOT
true?
A. It is the duty of the insured to submit a proof of loss.
B. The insurer provides the insured with the proof of loss at the appropriate
time
C. A proof of loss details the circumstances of the loss
D. A proof of loss may be oral
Exampromax - Stuvia US
Ans: D. A proof of loss may be oral
Q: A notice of claim to an insurer must include all of the following
EXCEPT:
A. Insured's name
B. Insured's address
C. Name of insured's attorney
D. Description of how the loss occurred
Ans: C. Name of insured's attorney
Q: John has two homeowner's policies in force. Policy A covers the home
for $200,000 and Policy B covers the home for $100,000. The total
insurance in force is $300,000. John has a fire that does $45,000 damage to
the home. How much will Policy A pay?
A. $45,000
B. $0
C. $15,000
D. $30,000
Ans: D. $30,000
