Pro-metric practice test P&C Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
All of the following are true about the limit of insurance in an unendorsed property insurance
policy EXCEPT:
A.It can be increased by attaching an endorsement.
B.The insured can expect additional limits automatically upon purchasing a second property.
C.The insurer will normally not pay more than the stated limit.
D.There are special limits of insurance on some types of property. - CORRECT
ANSWER B.The insured can expect additional limits automatically upon purchasing a
second property.
A store employee discovers a large shortage while taking product inventory. Under an
unendorsed Businessowners Policy, the loss:
A.Could be covered by an off-premises endorsement
B.Is covered if the store takes reasonable security precautions
C.Is covered under the additional coverages section of the policy
D.Is excluded under the limitations section of the policy - CORRECT ANSWER D.Is
excluded under the limitations section of the policy
Under the Farm Policy, losses which qualify for payment on a replacement cost basis is
limited to the actual cash value until:
A.The final loss report is submitted to the insurance company
B.A loss statement has been signed by the insured
C.The total damages exceed 80% of the limit of insurance
D.The actual repairs or replacement are completed - CORRECT ANSWER D.The
actual repairs or replacement are completed
When an insurer unknowingly accepts two large cash payments from an illegal drug dealer to
insure the drug operation and its employees, there is generally:
, A.No contract
B.A quasi-contract
C.A contract of adhesion
D.An unenforceable contract - CORRECT ANSWER An unenforceable contract
A group-owned insurer whose primary activity consists of assuming and spreading the
liability risks of its members is the definition of:
A.Reinsurer
B.Risk retention group
C.Insurance purchasing group
D.Pure off-shore captive - CORRECT ANSWER Risk retention group
An unendorsed liability insurance policy provides coverage for:
A.Criminal actions
B.Unintentional torts
C.Intentional torts
D.Moral obligations - CORRECT ANSWER Unintentional torts
Which of the following is NOT used in determining the amount an insured can receive under
the Personal Property Replacement Coverage Endorsement to a Homeowners Policy?
A.Full cost of repair at the time of loss
B.Depreciated market value
C.The Coverage C amount
D.Special limits stated in the policy - CORRECT ANSWER Depreciated market value
Which one of the following is covered under the Liability Coverage of the Business Auto
Coverage Form?
A.Workers compensation
B.Expected injury
C.Pollution
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
All of the following are true about the limit of insurance in an unendorsed property insurance
policy EXCEPT:
A.It can be increased by attaching an endorsement.
B.The insured can expect additional limits automatically upon purchasing a second property.
C.The insurer will normally not pay more than the stated limit.
D.There are special limits of insurance on some types of property. - CORRECT
ANSWER B.The insured can expect additional limits automatically upon purchasing a
second property.
A store employee discovers a large shortage while taking product inventory. Under an
unendorsed Businessowners Policy, the loss:
A.Could be covered by an off-premises endorsement
B.Is covered if the store takes reasonable security precautions
C.Is covered under the additional coverages section of the policy
D.Is excluded under the limitations section of the policy - CORRECT ANSWER D.Is
excluded under the limitations section of the policy
Under the Farm Policy, losses which qualify for payment on a replacement cost basis is
limited to the actual cash value until:
A.The final loss report is submitted to the insurance company
B.A loss statement has been signed by the insured
C.The total damages exceed 80% of the limit of insurance
D.The actual repairs or replacement are completed - CORRECT ANSWER D.The
actual repairs or replacement are completed
When an insurer unknowingly accepts two large cash payments from an illegal drug dealer to
insure the drug operation and its employees, there is generally:
, A.No contract
B.A quasi-contract
C.A contract of adhesion
D.An unenforceable contract - CORRECT ANSWER An unenforceable contract
A group-owned insurer whose primary activity consists of assuming and spreading the
liability risks of its members is the definition of:
A.Reinsurer
B.Risk retention group
C.Insurance purchasing group
D.Pure off-shore captive - CORRECT ANSWER Risk retention group
An unendorsed liability insurance policy provides coverage for:
A.Criminal actions
B.Unintentional torts
C.Intentional torts
D.Moral obligations - CORRECT ANSWER Unintentional torts
Which of the following is NOT used in determining the amount an insured can receive under
the Personal Property Replacement Coverage Endorsement to a Homeowners Policy?
A.Full cost of repair at the time of loss
B.Depreciated market value
C.The Coverage C amount
D.Special limits stated in the policy - CORRECT ANSWER Depreciated market value
Which one of the following is covered under the Liability Coverage of the Business Auto
Coverage Form?
A.Workers compensation
B.Expected injury
C.Pollution
