Insurance Licensing Exam Questions
and Answers Rated 100% Correct
An employee caught stealing cash from the register - correct answer ✔✔Which would NOT be
covered by the inside the premises- robbery or safe burglary other property coverage?
Make sure obligations are fulfilled - correct answer ✔✔The primary purpose of a surety bond is
to
The agency loses commission income from policies that were not issued by the insurer - correct
answer ✔✔An insurance agency could purchase an errors and omission insurance policy which
would provide protection in the event of any of the following events EXCEPT
A vehicle being used for public livery - correct answer ✔✔An uninsured motor vehicle includes
all of the following EXCEPT
Penalty - correct answer ✔✔A bond is written for a set limit, and the surety will be liable only
for this amount of the limit. This limit is known as the
An employee of a medical facility who suffers from a common cold - correct answer
✔✔Workers compensation statutes provide coverage for diseases that occur as a result of
working in the employers working environment. Which of the following is an example of a
disease that would NOT be covered by such provisions
Sales - correct answer ✔✔All of the following are factors in rating workers compensation
insurance EXCEPT
,The insured is injured while exiting a friends mobile home - correct answer ✔✔The medical
payments coverage in a personal auto policy will pay reasonable medical expenses for all of the
following EXCEPT
Submitting to a medical exam when requested - correct answer ✔✔In the event of a claim
under a commercial general liability policy, the insured has all of the following duties to the
insurer EXCEPT
Directors and officers liability - correct answer ✔✔Which of the following special liability
coverages will provide protection to managers of a corporation for claims arising from wrongful
act committed by the manager while in an official capacity
The drivers policy would be primary - correct answer ✔✔A passenger in a friends car is injured
while getting into the car. Which of the following statements would apply if both the passenger
and the driver had medical payments coverage under a personal auto policy?
The date when injury or damage occurs - correct answer ✔✔The occurrence form trigger is
based on which of the following?
Sales - correct answer ✔✔All of the following are factors in rating workers compensation
EXCEPT
$100 of payroll - correct answer ✔✔Workers compensation rating is developed by applying a
rating bureau job classification rate to each
Other-than-collision - correct answer ✔✔A meteorite hits the insureds car, causing damage.
Under which of the following coverages in a personal auto policy would this loss be paid?
$14,000
, The limit is not more than $5,000 per person, per accident - correct answer ✔✔An insured has
$5,000 of medical coverage on a personal auto policy at the time of a covered accident. The
insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000
for the first passenger, and $8,000 for the second passenger. How much will the policy pay
under medical payments coverage?
The excess over the self-insured retention - correct answer ✔✔When an umbrella policy is
broader than underlying insurance and it pays a loss that is not covered by the underlying
policy, it usually only pays
Principal - correct answer ✔✔The party to a surety or fidelity bond who promises to fulfill the
obligation is the
The failure of an attorney to properly defend a client due to his personal dislike of the client -
correct answer ✔✔All of the following situations would be covered under a professional liability
policy EXCEPT
Errors and omissions - correct answer ✔✔Professional liability coverage protects the insured
against legal liability resulting from
Embezzlement - correct answer ✔✔Directors and officers liability insurance defends actions
against a corporation or its officers and directors alleging wrongful acts. With regard to the
coverage provided, wrongful acts include all of the following EXCEPT
Tom works as a painter in an auto body shop. The chemicals from the paint aggravate toms
asthma to the point that he must be hospitalized for several days - correct answer ✔✔Which of
the following IS considered a work-related injury/occupational disease under workers
compensation law?
A bond penalty - correct answer ✔✔Surety bonds are written for a definite limit called
and Answers Rated 100% Correct
An employee caught stealing cash from the register - correct answer ✔✔Which would NOT be
covered by the inside the premises- robbery or safe burglary other property coverage?
Make sure obligations are fulfilled - correct answer ✔✔The primary purpose of a surety bond is
to
The agency loses commission income from policies that were not issued by the insurer - correct
answer ✔✔An insurance agency could purchase an errors and omission insurance policy which
would provide protection in the event of any of the following events EXCEPT
A vehicle being used for public livery - correct answer ✔✔An uninsured motor vehicle includes
all of the following EXCEPT
Penalty - correct answer ✔✔A bond is written for a set limit, and the surety will be liable only
for this amount of the limit. This limit is known as the
An employee of a medical facility who suffers from a common cold - correct answer
✔✔Workers compensation statutes provide coverage for diseases that occur as a result of
working in the employers working environment. Which of the following is an example of a
disease that would NOT be covered by such provisions
Sales - correct answer ✔✔All of the following are factors in rating workers compensation
insurance EXCEPT
,The insured is injured while exiting a friends mobile home - correct answer ✔✔The medical
payments coverage in a personal auto policy will pay reasonable medical expenses for all of the
following EXCEPT
Submitting to a medical exam when requested - correct answer ✔✔In the event of a claim
under a commercial general liability policy, the insured has all of the following duties to the
insurer EXCEPT
Directors and officers liability - correct answer ✔✔Which of the following special liability
coverages will provide protection to managers of a corporation for claims arising from wrongful
act committed by the manager while in an official capacity
The drivers policy would be primary - correct answer ✔✔A passenger in a friends car is injured
while getting into the car. Which of the following statements would apply if both the passenger
and the driver had medical payments coverage under a personal auto policy?
The date when injury or damage occurs - correct answer ✔✔The occurrence form trigger is
based on which of the following?
Sales - correct answer ✔✔All of the following are factors in rating workers compensation
EXCEPT
$100 of payroll - correct answer ✔✔Workers compensation rating is developed by applying a
rating bureau job classification rate to each
Other-than-collision - correct answer ✔✔A meteorite hits the insureds car, causing damage.
Under which of the following coverages in a personal auto policy would this loss be paid?
$14,000
, The limit is not more than $5,000 per person, per accident - correct answer ✔✔An insured has
$5,000 of medical coverage on a personal auto policy at the time of a covered accident. The
insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000
for the first passenger, and $8,000 for the second passenger. How much will the policy pay
under medical payments coverage?
The excess over the self-insured retention - correct answer ✔✔When an umbrella policy is
broader than underlying insurance and it pays a loss that is not covered by the underlying
policy, it usually only pays
Principal - correct answer ✔✔The party to a surety or fidelity bond who promises to fulfill the
obligation is the
The failure of an attorney to properly defend a client due to his personal dislike of the client -
correct answer ✔✔All of the following situations would be covered under a professional liability
policy EXCEPT
Errors and omissions - correct answer ✔✔Professional liability coverage protects the insured
against legal liability resulting from
Embezzlement - correct answer ✔✔Directors and officers liability insurance defends actions
against a corporation or its officers and directors alleging wrongful acts. With regard to the
coverage provided, wrongful acts include all of the following EXCEPT
Tom works as a painter in an auto body shop. The chemicals from the paint aggravate toms
asthma to the point that he must be hospitalized for several days - correct answer ✔✔Which of
the following IS considered a work-related injury/occupational disease under workers
compensation law?
A bond penalty - correct answer ✔✔Surety bonds are written for a definite limit called
