Pearson VUE: Casualty Insurance Practice
Exam| Complete Verified Questions and
Answers (A+ GRADED 100% VERIFIED)
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured party
is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - ANSWER: B
A Commercial General Liability policy provides coverage for which of the following
hazards?
A. Professional Liability
B. Employee Injury Liability
C. Pollution Liability
D. Premises Liability - ANSWER: D
A legal obligation for injuries that are sustained due to failure to perform a duty is
known as:
A. negligence
B. liability
C. physical hazard
D. claims payment - ANSWER: B
A person is acting negligently if they:
A. buy a sportscar
, B. fail to act prudently
C. work at home
D. spend more than they earn - ANSWER: B
A policyholder would expect to find which of the following information in the Insuring
Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss - ANSWER: B
a store, all of the following situations would be considered theft EXCEPT:
A. merchandise being stolen with evidence of forced entry
B. a clerk witnessing a customer shoplifting merchandise
C. a clerk being robbed at gunpoint
D. the store's year-end inventory coming up short by 5 percent - ANSWER: D
Actual cash value is most often defined as:
A. replacement cost less depreciation
B. original purchase price less depreciation
C. stated amount a policy will pay
D. cost to replace - ANSWER: A
After paying a claim, an insurance company may have the right to pursue legal
action against the negligent party. This right is called:
A. assignment
B. other insurance
Exam| Complete Verified Questions and
Answers (A+ GRADED 100% VERIFIED)
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured party
is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - ANSWER: B
A Commercial General Liability policy provides coverage for which of the following
hazards?
A. Professional Liability
B. Employee Injury Liability
C. Pollution Liability
D. Premises Liability - ANSWER: D
A legal obligation for injuries that are sustained due to failure to perform a duty is
known as:
A. negligence
B. liability
C. physical hazard
D. claims payment - ANSWER: B
A person is acting negligently if they:
A. buy a sportscar
, B. fail to act prudently
C. work at home
D. spend more than they earn - ANSWER: B
A policyholder would expect to find which of the following information in the Insuring
Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss - ANSWER: B
a store, all of the following situations would be considered theft EXCEPT:
A. merchandise being stolen with evidence of forced entry
B. a clerk witnessing a customer shoplifting merchandise
C. a clerk being robbed at gunpoint
D. the store's year-end inventory coming up short by 5 percent - ANSWER: D
Actual cash value is most often defined as:
A. replacement cost less depreciation
B. original purchase price less depreciation
C. stated amount a policy will pay
D. cost to replace - ANSWER: A
After paying a claim, an insurance company may have the right to pursue legal
action against the negligent party. This right is called:
A. assignment
B. other insurance
