Property and Casualty Exam- Louisiana EXAM 2025 | ACTUAL REAL EXAM ACCURATE QUESTIONS AND ANSWERS WITH RATIONALES | VERIFIED AND LATEST UPDATED |GUARANTEED PASS

The personal injury liability endorsement to a homeowners policy applies to all the following EXCEPT: A. Libel B. Slander C. False arrest D. A third party breaks a leg when the insured knocks him down Correct Answer: D Rationale: Personal injury liability covers non-physical injuries like libel or slander. Bodily injury like a broken leg is covered under general liability, not personal injury. The process an insurer uses to evaluate applications and determine if a policy should be issued and on what terms is known as: A. Rating B. Underwriting C. Binding D. Quoting Correct Answer: B Rationale: Underwriting is the process of evaluating risk and determining the appropriate terms and pricing for insurance. Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA to the year: A. 2017 B. 2018 C. 2020 D. 2022 Correct Answer: C Rationale: The 2015 reauthorization extended TRIA through December 31, 2020. According to the Fair Credit Reporting Act, which of the following is NOT considered negative information? A. Missed payments B. Bankruptcies C. Foreclosures D. Disputes regarding consumer report information Correct Answer: D Rationale: Disputes are part of a consumer's right to challenge and are not inherently negative information. Replacement cost coverage is provided in dwelling policies when: A. The deductible is met B. The structure is over 20 years old C. The insured carries at least 80% of the replacement cost D. The structure is less than 1,000 sq. ft. Correct Answer: C Rationale: Most replacement cost policies require coverage to be at least 80% of the replacement cost of the property. The business income coverage form is an example of what kind of coverage? A. Occurrence B. Blanket C. Time element D. Agreed value Correct Answer: C Rationale: Time element coverage refers to losses that occur over time, such as lost income due to business interruption. What type of insurance covers liability assumed under a written contract? A. General liability B. Contractual liability C. Comprehensive coverage D. Umbrella policy Correct Answer: B Rationale: Contractual liability insurance covers the insured for liability assumed under certain contracts. Which commercial crime form covers a loss revealed during the policy period but not necessarily occurring during it? A. Loss-sustained form B. Discovery form C. Claims-made form D. Occurrence form Correct Answer: B Rationale: The discovery form provides coverage for losses discovered during the policy period, regardless of when they occurred. Under the Fair Credit Reporting Act, if a consumer disputes the report’s accuracy, the agency must: A. Cancel the report B. Refer to a credit counselor C. Respond to the consumer's complaint D. Notify the insurer Correct Answer: C Rationale: The Act requires agencies to investigate and respond to consumer disputes. Workers compensation benefits are provided in all the following cases EXCEPT: A. Slip and fall in the workplace B. Injury during a required work task C. Harm from repetitive motion D. Injury while observing a competitor's ad on personal time Correct Answer: D Rationale: Workers compensation does not cover injuries that occur outside the scope of employment. An insured pays $100/month but receives $10,000 in coverage. This illustrates which contract feature? A. Conditional B. Unilateral C. Aleatory D. Adhesion Correct Answer: C Rationale: An aleatory contract is based on unequal exchange of value — small premium for potentially large payout. Which of the following is NOT considered an uninsured motor vehicle? A. A hit-and-run vehicle B. A vehicle with no liability coverage C. A stolen vehicle D. A vehicle with liability insurance Correct Answer: D Rationale: A vehicle with liability insurance is not considered uninsured. What are the types of authority held by an insurance agent? A. Legal and illegal B. General and limited C. Express and implied D. Active and passive Correct Answer: C Rationale: Express authority is stated in the contract; implied is assumed necessary to carry out duties. Which of the following is NOT a supplemental payment in liability policies? A. Court costs B. Bail bonds C. Premiums on appeal bonds D. Attorney fees the insured paid personally Correct Answer: D Rationale: Supplemental payments cover attorney fees the insurer incurs, not those paid by the insured. Which part of a dwelling policy provides coverage for additional living expenses? A. Coverage A B. Coverage B C. Coverage D D. Coverage E Correct Answer: D Rationale: Coverage E applies to additional living expenses for owner-occupants after a covered loss. A producer who mixes premium funds with personal funds is guilty of: A. Embezzlement B. Coercion C. Commingling D. Twisting Correct Answer: C Rationale: Commingling is the illegal mixing of client funds with personal or business funds. Which coverage protects against damage by an uninsured driver? A. Collision B. Liability C. Medical payments D. Uninsured motorist Correct Answer: D Rationale: Uninsured motorist coverage pays for injuries and damages caused by drivers without insurance.