P&C Pro-metric Practice Test (Maryland)
Stimulator Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Can a warranty be valid and enforced if not specifically written out in the contract? -
CORRECT ANSWER Sometimes a warranty only need be expressed or implied
Howard was watching a TV commercial that advertised, "A household cleaner which would
get rid of any type of grease stain." Howard purchased this product to remove a grease stain
he had on his garage floor.
After many attempts at cleaning using this product, the grease stain still remained. Could
Howard file a claim against the cleaning company because its product did not work? -
CORRECT ANSWER Yes, because express warranty exists
Name one way in which strict liability is different from negligence. - CORRECT
ANSWER Under strict liability, the nature or type of product is the issue for the claim
Yolanda was injured while performing her daily duties at work. Under worker's compensation
laws, will Yolanda have to prove her company was at fault for her injuries? - CORRECT
ANSWER No, in the majority of cases, injury claims at work will be paid without
proving fault
Under which exception to the exclusive remedy approach are employees required to prove
negligence on the part of their employer to receive
compensation for an injury at work? - CORRECT ANSWER Employer's liability
While employer's liability coverage does require fault to be proven by the employee, the
coverage also has two advantages over workers' compensation coverage. Which two types of
claims would be covered under employer's liability coverage but not workers' compensation
coverage? - CORRECT ANSWER Dual capacity claims and third-party-over claims
, Under employer's liability coverage, can an employee sue an employer in addition to
collecting through a workers' compensation claim? - CORRECT ANSWER Yes, under
a dual capacity claim
Lindsay suffered a loss to her property after a major storm hit her town. Lindsay wanted her
homeowner's insurance to pay for the loss, but her insurance carrier wanted to deny the claim.
The insurance carrier was looking to deny on the basis that Lindsay did not do enough to
secure her property prior to the storm. If Lindsay and the insurance carrier cannot come to an
agreement and wish to not proceed through the court system, what is another means they
could use to determine fault? - CORRECT ANSWER Arbitration
Under which type of arbitration is the decision final? - CORRECT ANSWER binding
arbitration
Does non-binding arbitration always result in a final
"winner"? - CORRECT ANSWER No, the non-winning party does not have to accept
the arbitrator's decision
Brent owned multiple properties, vehicles, and a couple of commercial locations.
To cover all of Brent's exposures, he purchased a couple of different insurance policies. If
Brent suffered a loss to one of his properties and more than one of his policies covered his
loss, what could the insurance carriers do to determine which policy would pay? - CORRECT
ANSWER Proceed according to any concurrent insurance provisions outlined
All of the following are ways in which an insured can interfere with subrogation EXCEPT: -
CORRECT ANSWER Provide the insurance carrier with complete documentation of
the loss
When notifying the insurance carrier of a claim, does the insured have to submit the notice on
a specific form or document? - CORRECT ANSWER no, a form, letter, or lawsuit
could notify of a claim
Michael was running late for a meeting at his job and did not lock his car door. When he
realized it was unlocked, Michael did not want to turn around to go back and lock the vehicle.
Stimulator Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Can a warranty be valid and enforced if not specifically written out in the contract? -
CORRECT ANSWER Sometimes a warranty only need be expressed or implied
Howard was watching a TV commercial that advertised, "A household cleaner which would
get rid of any type of grease stain." Howard purchased this product to remove a grease stain
he had on his garage floor.
After many attempts at cleaning using this product, the grease stain still remained. Could
Howard file a claim against the cleaning company because its product did not work? -
CORRECT ANSWER Yes, because express warranty exists
Name one way in which strict liability is different from negligence. - CORRECT
ANSWER Under strict liability, the nature or type of product is the issue for the claim
Yolanda was injured while performing her daily duties at work. Under worker's compensation
laws, will Yolanda have to prove her company was at fault for her injuries? - CORRECT
ANSWER No, in the majority of cases, injury claims at work will be paid without
proving fault
Under which exception to the exclusive remedy approach are employees required to prove
negligence on the part of their employer to receive
compensation for an injury at work? - CORRECT ANSWER Employer's liability
While employer's liability coverage does require fault to be proven by the employee, the
coverage also has two advantages over workers' compensation coverage. Which two types of
claims would be covered under employer's liability coverage but not workers' compensation
coverage? - CORRECT ANSWER Dual capacity claims and third-party-over claims
, Under employer's liability coverage, can an employee sue an employer in addition to
collecting through a workers' compensation claim? - CORRECT ANSWER Yes, under
a dual capacity claim
Lindsay suffered a loss to her property after a major storm hit her town. Lindsay wanted her
homeowner's insurance to pay for the loss, but her insurance carrier wanted to deny the claim.
The insurance carrier was looking to deny on the basis that Lindsay did not do enough to
secure her property prior to the storm. If Lindsay and the insurance carrier cannot come to an
agreement and wish to not proceed through the court system, what is another means they
could use to determine fault? - CORRECT ANSWER Arbitration
Under which type of arbitration is the decision final? - CORRECT ANSWER binding
arbitration
Does non-binding arbitration always result in a final
"winner"? - CORRECT ANSWER No, the non-winning party does not have to accept
the arbitrator's decision
Brent owned multiple properties, vehicles, and a couple of commercial locations.
To cover all of Brent's exposures, he purchased a couple of different insurance policies. If
Brent suffered a loss to one of his properties and more than one of his policies covered his
loss, what could the insurance carriers do to determine which policy would pay? - CORRECT
ANSWER Proceed according to any concurrent insurance provisions outlined
All of the following are ways in which an insured can interfere with subrogation EXCEPT: -
CORRECT ANSWER Provide the insurance carrier with complete documentation of
the loss
When notifying the insurance carrier of a claim, does the insured have to submit the notice on
a specific form or document? - CORRECT ANSWER no, a form, letter, or lawsuit
could notify of a claim
Michael was running late for a meeting at his job and did not lock his car door. When he
realized it was unlocked, Michael did not want to turn around to go back and lock the vehicle.
