LA Property & Casualty
1. First Street Supply Company has a good business rela- waiver of our rights
tionship with its main customer, Alliance Metals, which
it wants to maintain even if a First Street employ-
ee were to get injured while visiting Alliance's facto-
ry. Which of the following endorsements might First
Street add to its workers compensation policy to min-
imize potential disputes should that ever happen?
1. Voluntary Compensation and Employers Liability
Coverage endorsement
2. Waiver of Our Right to Recover from Others en-
dorsement
3. Federal Employers Liability Act Coverage endorse-
ment
4. General liability Rider endorsement
2. All of the following are described in the cancellation where the policy may be
provision in property and casualty insurance policies canceled
EXCEPT:
1. why the policy may be canceled
2. who may cancel the policy
3. when the policy may be canceled
4. where the policy may be canceled
3. Under the terms of an insurance policy's liberalization the insurer's need to make
clause, an insurer may revise a standard policy form the policy more profitable
at the time of renewal for all the following reasons
EXCEPT:
1. new exposures
2. court decisions
, LA Property & Casualty
3. the insurer's need to make the policy more prof-
itable
4. the need to clarify the insurer's intentions
4. Mr. Abramson is having a new house built. You tell .Dwelling Under Con-
him he can purchase a dwelling policy while the house struction
is being built, but he needs to add an endorsement
to the policy. What endorsement does he need to
purchase?
1. Broad Theft
2. Dwelling Under Construction
3. Personal Liability Supplement
4.Automatic Increase in Insurance
5. A state that maintains a fund that pays for workers .monopolistic state fund
compensation claims is called what type of workers
compensation insurance market?
1. voluntary private market
2. state residual market plan
3. assigned risk plan
4.monopolistic state fund
6. The Louisiana Insurance Commissioner cannot sus- failing to meet projected
pend or revoke an agent's license for which of the sales goals
following reasons?
1. failing to meet projected sales goals
2. having an agent's license denied or suspended in
another state
3. signing a customer's name on an insurance applica-
, LA Property & Casualty
tion
4. misrepresenting the terms of an insurance contract
7. Which of the following is NOT a special type of insur- .homeowners
ance coverage?
1.earthquake
2.homeowners
3.crop-hail
4.watercraft
8. Employers unable to purchase workers compensation residual market facility
insurance in the voluntary private market can buy it
from the state:
1. self-insurer fund
2. group insurance market
3.monopolistic state fund
4.residual market facility
9. Although the direct damage to a building caused by .ordinance or law exclu-
an explosion may be covered under a property insur- sion
ance policy, what exclusion might rule out coverage
for costs that are necessary to comply with current
building codes?
1.nuclear hazard exclusion
2.wear-and-tear exclusion
3.ordinance or law exclusion
4.mechanical breakdown exclusion
10. Which of the following producers is NOT engaging in Duane, whose commis-
controlled business? sions come from in-
, LA Property & Casualty
surance written on his
1. Duane, whose commissions come from insurance friends' businesses.
written on his friends' businesses.
2. Sylvia, whose commissions come from insurance
written on her father's business.
3. Ricardo, whose commissions come from insurance
written on his business partners.
4. Jewel, whose commissions come from insurance
written on her employees.
11. Super Insurance Company often engages in settle- Refuse to settle a claim
ment negotiations with claimants. In doing so, it is until liability is certain.
permitted to use which of these tactics to close a
case?
1. Ignore communications from claimants unless they
are represented by legal counsel
2. Refuse to settle a claim until liability is certain.
3. Threaten to appeal a claimant's arbitration award to
force the claimant to accept a lower settlement offer.
4. Conclude a claim investigation without affirming or
denying coverage
12. Chad's home suffered severe water damage while he only Chad, the current
was negotiating its sale. The real estate sales contract owner of the property
had only been signed by Chad at the time the damage
occurred. Who will be able to collect insurance to re-
pair this damaged property?
1. only Chad, the current owner of the property
2. both Chad and the buyer
3. only the buyer
4. the buyer and the buyer's mortgage company
1. First Street Supply Company has a good business rela- waiver of our rights
tionship with its main customer, Alliance Metals, which
it wants to maintain even if a First Street employ-
ee were to get injured while visiting Alliance's facto-
ry. Which of the following endorsements might First
Street add to its workers compensation policy to min-
imize potential disputes should that ever happen?
1. Voluntary Compensation and Employers Liability
Coverage endorsement
2. Waiver of Our Right to Recover from Others en-
dorsement
3. Federal Employers Liability Act Coverage endorse-
ment
4. General liability Rider endorsement
2. All of the following are described in the cancellation where the policy may be
provision in property and casualty insurance policies canceled
EXCEPT:
1. why the policy may be canceled
2. who may cancel the policy
3. when the policy may be canceled
4. where the policy may be canceled
3. Under the terms of an insurance policy's liberalization the insurer's need to make
clause, an insurer may revise a standard policy form the policy more profitable
at the time of renewal for all the following reasons
EXCEPT:
1. new exposures
2. court decisions
, LA Property & Casualty
3. the insurer's need to make the policy more prof-
itable
4. the need to clarify the insurer's intentions
4. Mr. Abramson is having a new house built. You tell .Dwelling Under Con-
him he can purchase a dwelling policy while the house struction
is being built, but he needs to add an endorsement
to the policy. What endorsement does he need to
purchase?
1. Broad Theft
2. Dwelling Under Construction
3. Personal Liability Supplement
4.Automatic Increase in Insurance
5. A state that maintains a fund that pays for workers .monopolistic state fund
compensation claims is called what type of workers
compensation insurance market?
1. voluntary private market
2. state residual market plan
3. assigned risk plan
4.monopolistic state fund
6. The Louisiana Insurance Commissioner cannot sus- failing to meet projected
pend or revoke an agent's license for which of the sales goals
following reasons?
1. failing to meet projected sales goals
2. having an agent's license denied or suspended in
another state
3. signing a customer's name on an insurance applica-
, LA Property & Casualty
tion
4. misrepresenting the terms of an insurance contract
7. Which of the following is NOT a special type of insur- .homeowners
ance coverage?
1.earthquake
2.homeowners
3.crop-hail
4.watercraft
8. Employers unable to purchase workers compensation residual market facility
insurance in the voluntary private market can buy it
from the state:
1. self-insurer fund
2. group insurance market
3.monopolistic state fund
4.residual market facility
9. Although the direct damage to a building caused by .ordinance or law exclu-
an explosion may be covered under a property insur- sion
ance policy, what exclusion might rule out coverage
for costs that are necessary to comply with current
building codes?
1.nuclear hazard exclusion
2.wear-and-tear exclusion
3.ordinance or law exclusion
4.mechanical breakdown exclusion
10. Which of the following producers is NOT engaging in Duane, whose commis-
controlled business? sions come from in-
, LA Property & Casualty
surance written on his
1. Duane, whose commissions come from insurance friends' businesses.
written on his friends' businesses.
2. Sylvia, whose commissions come from insurance
written on her father's business.
3. Ricardo, whose commissions come from insurance
written on his business partners.
4. Jewel, whose commissions come from insurance
written on her employees.
11. Super Insurance Company often engages in settle- Refuse to settle a claim
ment negotiations with claimants. In doing so, it is until liability is certain.
permitted to use which of these tactics to close a
case?
1. Ignore communications from claimants unless they
are represented by legal counsel
2. Refuse to settle a claim until liability is certain.
3. Threaten to appeal a claimant's arbitration award to
force the claimant to accept a lower settlement offer.
4. Conclude a claim investigation without affirming or
denying coverage
12. Chad's home suffered severe water damage while he only Chad, the current
was negotiating its sale. The real estate sales contract owner of the property
had only been signed by Chad at the time the damage
occurred. Who will be able to collect insurance to re-
pair this damaged property?
1. only Chad, the current owner of the property
2. both Chad and the buyer
3. only the buyer
4. the buyer and the buyer's mortgage company
